Figure 5-2 -Refer to Figure 5-2.If the Price Decreased from $18 to Decreased

question 94

Multiple Choice

Figure 5-2

-Refer to Figure 5-2.If the price decreased from $18 to $6,

• A)total revenue would increase by $1,200 and demand is elastic between points A and C.
• B)total revenue would increase by $800 and demand is elastic between points A and C.
• C)total revenue would decrease by $1,200 and demand is inelastic between points A and C.
• D)total revenue would decrease by $800 and demand is inelastic between points A and C.

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Definitions:

Price Increases

Price increases refer to the action of raising the cost at which goods or services are sold, often in response to factors like inflation, increased production costs, or higher demand.

Price Decreases

A reduction in the cost at which goods or services are sold to consumers or businesses.

Consumers

Individuals or organizations that purchase or use goods and services for personal use or consumption.

Pricing Decisions

The process of setting the price for a product or service, influenced by costs, competition, market demand, and perceived value.