Along the Elastic Range of a Demand Curve, a Price

question 24

Multiple Choice

Along the elastic range of a demand curve, a price change causes:

• A) a change in total revenue in the opposite direction.
• B) a change in total revenue in the same direction.
• C) no change in total revenue.
• D) an unpredictable change in the total revenue.

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Definitions:

Prices

The cost in terms of money expected, required, or given for acquiring something.

Marginal Revenue

The extra revenue a company earns by selling an additional unit of a product or service.

Prices

The cash amount one needs to spend to obtain a good, service, or asset.

Marginal Cost

The uptick in cumulative expenses that comes from producing an additional unit of a product or service.