What Happens to Total Revenue for a Product That Has

question 31

Multiple Choice

What happens to total revenue for a product that has many substitutes when the price is increased?

• A) Total revenue increases.
• B) Total revenue decreases.
• C) Total revenue stays the same.
• D) The impact on total revenue cannot be determined from the information provided.

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Definitions:

Hypothesis

A proposed explanation for a phenomenon, which can be tested through experimentation and research.

Positive Correlation

A connection between two variables where both variables shift in tandem.

Independent Variables

In experimental design, the variables that are manipulated by the researcher to observe their effect on dependent variables.

Opposite Direction

A term indicating a movement, action, or trend that goes in the reverse direction of a previously established pattern or expectation.