If the Demand for a Product Is Perfectly Inelastic, a Decrease

question 136

Multiple Choice

If the demand for a product is perfectly inelastic, a decrease in the price of the product

• A)will increase total revenue.
• B)will decrease total revenue.
• C)will not change total revenue.
• D)any of the above are possible.

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Definitions:

Comparative Advantage

The ability of an individual, company, or country to produce a good or service at a lower opportunity cost than competitors, leading to specialized production and trade.

Production Possibilities

Different mixtures of products and services that an economy can generate with its current resources and technological capabilities.

Fish

Aquatic animals that are primarily gilled and often harvested for food, sport, or aquariums.

Coconuts

Tropical fruits with a hard shell, edible white flesh, and clear liquid inside, often found in coastal regions.