When a 2 Percent Increase in Price Generates a Greater

question 70

Multiple Choice

When a 2 percent increase in price generates a greater than 2 percent decrease in quantity demanded, then:

• A) demand is price inelastic.
• B) total revenue increases.
• C) demand is positively sloped.
• D) demand is unit elastic.
• E) total revenue

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Definitions:

Electrician

A skilled tradesperson who installs, maintains, and repairs electrical power systems and equipment.

Pilot Device

A device used to control or manipulate the operation of electrical machines through minor input adjustments.

Two-wire Motor

A motor that operates with a simple on-off control, requiring only two wires for operation.

Motor Starter

A control device that initiates the operation of an electric motor by managing electrical current flow.