If a Rise in Price Results in a Decrease in Total

question 28

Multiple Choice

If a rise in price results in a decrease in total revenue, then the price elasticity of demand is

• A)negative.
• B)zero.
• C)greater than zero but less than 1.
• D)equal to 1.
• E)greater than 1.

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Definitions:

Manufacturing

The process of converting raw materials or components into finished goods using tools, human labor, machinery, and chemical processing.

Export Promotion

A government strategy aimed at encouraging local producers to sell their goods and services abroad.

Import Substitution

An economic policy that aims to replace foreign imports with domestic production, often through the use of tariffs, quotas, and other trade barriers.

Economic Growth

An increase in the production of goods and services in an economy over a period, typically measured by the rise in real GDP.