When Demand Is Inelastic and Price Decreases

question 96

Multiple Choice

When demand is inelastic and price decreases:

• A)the effect of the decrease in price on total revenue dominates the effect of the increase in quantity demanded on total revenue; overall total revenue declines.
• B)the effect of the increase in quantity demanded on total revenue dominates the effect of the decrease in price on total revenue; overall total revenue increases.
• C)the effects of the decrease in price on total revenue and the corresponding increase in quantity demanded on total revenue perfectly offset one another; overall total revenue remains unchanged.
• D)quantity demanded and total revenue fall to zero.

Identify ethical issues surrounding the use of information and technology in surveillance and data collection.

Differentiate between ethical and legal considerations in information technology.

Recognize the significance of data protection laws and privacy rights.

Evaluate the implications of machine learning and artificial intelligence in law enforcement tools.

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Definitions:

Cost Object

The object or segment of operations to which costs are related for management’s use, such as a product or department.

Machine Operator

An individual responsible for running the machine effectively, performing maintenance, and ensuring smooth operation during the production process.

Direct Labor

Labor costs that can be easily traced to the production of specific goods or services.

Factory Overhead

Refers to the indirect costs associated with manufacturing, not directly tied to a specific unit of product, such as utilities and maintenance expenses.