When the Price Elasticity of Demand Is High and Prices

question 93

Multiple Choice

When the price elasticity of demand is high and prices go up,total ________.

• A) revenues stay the same
• B) revenues decline
• C) revenues increase
• D) profits increase

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Definitions:

Usury Law

Usury Law refers to regulations governing the amount of interest that can be charged on a loan, intended to protect borrowers from excessive and unfair interest rates.

Interest Rate

The cost of borrowing money or the return on saving, expressed as a percentage of the principal amount per period.

Elastic

A characteristic of a good or service that describes its responsiveness to changes in price; highly sensitive to price changes.

Rents

Payments made to the owner of a property (such as land, buildings, or apartments) for the use of that property.