A Product Has an Inelastic Demand If

question 113

Multiple Choice

A product has an inelastic demand if

• A) price falls and total revenue (or total consumer expenditures) rises.
• B) price rises and total revenue (or total consumer expenditures) falls.
• C) price rises and total revenue (or total consumer expenditures) rises.
• D) its slope is less than 1.
• E) price changes and there is no change in total revenue (or total consumer expenditures).

---

Definitions:

New Perspective

Fresh outlook or approach towards understanding or addressing an issue or concept.

Heuristics

Simple, efficient rules or guidelines used to make quick decisions or solve problems.

Intuitive Judgments

Decisions made quickly and without conscious reasoning, relying on gut feelings and automatic cognitive processes.

Quick

The ability to do something or the act of doing something with speed or within a short time frame.