​If the Price Elasticity of Demand Is -0

question 58

Multiple Choice

​If the price elasticity of demand is -0.8 and the firm increases price,revenue will

• A)​Increase
• B)Decrease
• C)Stay constant
• D)​become zero,they would lose all their customers

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Definitions:

Credit Bureaus

Organizations that collect and maintain individual credit information, providing credit reports to lenders, employers, and others authorized to receive such information.

Credit Histories

Records that document an individual's or company's past borrowing and repaying behaviors, including information on late payments and bankruptcy.

Moral Hazard

The situation in which one party engages in risky behavior knowing that it is protected against the risk because another party will incur the cost.

Adverse Selection

A situation where asymmetric information leads to the selection of undesirable alternatives in transactions.