When Demand Is Price Inelastic

question 84

Multiple Choice

When demand is price inelastic,

• A) price and total revenue move in the same direction.
• B) price and total revenue move in the opposite direction.
• C) total revenue increases whether price goes up or down.
• D) total revenue decreases whether price goes up or down.

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Definitions:

Dependent Variable

In an experiment, the variable being tested and measured, which is expected to change as a result of manipulations of the independent variable.

Social Desirability Bias

The tendency of respondents to answer questions in a manner that will be viewed favorably by others.

Honesty Survey

A method of collecting data which relies on the self-reported truthfulness of participants regarding sensitive or personal issues.

Experimenter Bias

A process where the scientists performing the research influence the results, intentionally or unintentionally, towards their expected outcome.