The Total Revenue Test Says

question 176

Multiple Choice

The total revenue test says
i.Demand is elastic if a decrease in price results in an increase in total revenue.
ii.Total revenue is maximized when demand is elastic.
iii.Total revenue is minimized when demand is unit elastic.

• A) i only
• B) i and ii
• C) ii and iii
• D) i, ii and iii
• E) ii only

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Definitions:

Suggestive Selling

A sales technique where the seller recommends additional products or services to the buyer.

Extended Warranty

An additional warranty that covers the repair or replacement of items beyond the original manufacturer's warranty.

Need-satisfaction Format

A sales approach focusing on identifying and meeting the needs, wants, or challenges of customers as a priority.

Marketing Concept

A philosophy that firms should analyze the needs of their customers and make decisions to satisfy those needs, better than the competition.