When Demand Is Price Inelastic

question 84

Multiple Choice

When demand is price inelastic,

• A) price and total revenue move in the same direction.
• B) price and total revenue move in the opposite direction.
• C) total revenue increases whether price goes up or down.
• D) total revenue decreases whether price goes up or down.

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Definitions:

Lawn Mower

A machine equipped with revolving blades to cut grass to an even length, typically used in garden and lawn maintenance.

Bubbles

Economic phenomena characterized by rapid increases in asset prices to levels significantly above their fundamental values, followed by abrupt crashes.

Demand

The desire combined with the ability to purchase a specific quantity of a good or service at a particular price and time.

Supply

The total amount of a product or service available for purchase at any given price point in a market.