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If Demand Is Elastic, a Rise in Price Will Decrease

question 138

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If demand is elastic, a rise in price will decrease total expenditure.


Definitions:

Market Price

The ongoing cost at which one can purchase or sell a good or service in the market.

Total Revenue Curve

A graphical representation of the total income a firm receives from the sale of its goods or services at various levels of output.

Marginal Cost

The supplemental charge that arises from the production of an extra good or service unit.

Marginal Revenue

Increase in earnings from selling an additional unit of a product or service.

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