All Else Equal, If a Firm Raises Its Price by 20

question 166

Multiple Choice

All else equal, if a firm raises its price by 20 percent and the firm's total revenue falls by 20 percent,

• A) demand must be elastic.
• B) demand must be inelastic.
• C) demand must be unit elastic.
• D) the price elasticity of demand must be equal to 1.

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Definitions:

Waiting Time

The period between a request or need for service and the actual provision of that service, often analyzed in queue theory and service operations.

Standard Deviation

Standard deviation is a measure of the amount of variation or dispersion of a set of values, indicating how much the values in a data set differ from the mean.

Confidence Interval

A range of values, derived from sample statistics, that is believed to contain the value of an unknown population parameter with a certain probability.

Vegetarians

Individuals who abstain from consuming meat, and sometimes other animal products, for ethical, environmental, or health reasons.