The Demand for a Good Is Price Inelastic If

question 49

Multiple Choice

The demand for a good is price inelastic if

• A)a rise in price results in an increase in total revenue.
• B)a rise in price results in a decrease in total revenue.
• C)an increase in income results in a decrease in total revenue.
• D)an increase in income results in an increase in total revenue.
• E)the good is a luxury.

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Definitions:

Leather Jackets

Durable outerwear made from the tanned hide of animals, primarily used for fashion, protection, and in motorcycle attire.

Consumer Income

represents the total earnings received by consumers, including wages, salaries, benefits, and income from investments, influencing their purchasing power.

Soybean

A leguminous plant widely grown for its edible beans which are rich in protein and oil.

Alternative Crops

Crops that are not the usual cash crops in a region, often introduced for diversification and risk reduction in agriculture.