Suppose That Demand Is Inelastic Within a Certain Price Range

question 170

Multiple Choice

Suppose that demand is inelastic within a certain price range.For that price range,

• A)an increase in price would increase total revenue because the decrease in quantity demanded is proportionately less than the increase in price.
• B)an increase in price would decrease total revenue because the decrease in quantity demanded is proportionately greater than the increase in price.
• C)a decrease in price would increase total revenue because the increase in quantity demanded is proportionately smaller than the decrease in price.
• D)a decrease in price would not affect total revenue.

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Definitions:

Protection

Measures taken to guard against harm, damage, loss, or other undesirable outcomes.

Resources

Assets, materials, or other valuables that can be used to support various actions or activities.

Ostracism

The social or psychological exclusion or isolation of an individual or group by a larger group, often resulting in feelings of loneliness and depression.

Affiliation

The relationship or connection between individuals or groups, often implying a sense of belonging or association with a particular community or organization.