What Does It Tell You If Demand Is Price Elastic

question 13

Multiple Choice

What does it tell you if demand is price elastic?

• A) A price decrease increases revenue.
• B) The percentage change in quantity demand is less than the change in price.
• C) The value of price elasticity is less than 1.
• D) There are likely to be few substitutes.

Understand the concept of anticipatory emotions and their role in goal achievement.

Describe the elements of strong organizational commitment.

Identify and differentiate between positive and negative emotions.

Understand the effects of positive emotions on personal well-being and performance.

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Definitions:

Marginal Revenue

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

Total Revenue

Total Revenue is the total amount of money received by a company for goods sold or services provided during a certain time period.

Perfectly Elastic

A situation in which the quantity demanded or supplied responds infinitely to changes in price.

Existing Price

The current market price at which a good or service can be bought or sold.