If a Firm Increases Its Prices When the Demand Is

question 127

Multiple Choice

If a firm increases its prices when the demand is inelastic, then the firm will see

• A)an increase in revenues.
• B)a decrease in revenues.
• C)no change in revenues.
• D)no effect on the sales of its product.

---

Definitions:

Emotional Bases

denotes the underlying psychological foundations that support and facilitate emotional experiences and expressions.

Peer Relations

The interactions and relationships that occur between individuals of similar age, often influencing social development and behavior.

Maturity Level

The state of being fully developed in the physical, emotional, or psychological sense.

Ambiguous Behavior

Actions or reactions that can be interpreted in multiple ways due to their lack of clarity or certainty.