When Demand Is Inelastic and Price Decreases

question 96

Multiple Choice

When demand is inelastic and price decreases:

• A)the effect of the decrease in price on total revenue dominates the effect of the increase in quantity demanded on total revenue; overall total revenue declines.
• B)the effect of the increase in quantity demanded on total revenue dominates the effect of the decrease in price on total revenue; overall total revenue increases.
• C)the effects of the decrease in price on total revenue and the corresponding increase in quantity demanded on total revenue perfectly offset one another; overall total revenue remains unchanged.
• D)quantity demanded and total revenue fall to zero.

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Definitions:

Conflict Perspective

A sociological approach that emphasizes the role of power dynamics, inequity, and social conflict in shaping human society and interactions.

Socialization Process

The process through which individuals learn and internalize the values, beliefs, and norms of their culture or society, shaping their personality and behavior.

Social Control

Mechanisms a society uses to influence individual behavior to conform to norms and values.

Internalizing Social Norms

The process by which individuals adopt the behaviors, values, and attitudes deemed appropriate by their society or social groups as their own.