If a Change in the Price of a Good Results

question 43

Multiple Choice

If a change in the price of a good results in no change in total revenue,then

• A)the demand for the good must be elastic.
• B)the demand for the good must be inelastic.
• C)the demand for the good must be unit elastic.
• D)buyers must not respond very much to a change in price.

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Definitions:

Demand Curve

A graph showing the relationship between the quantity of a commodity demanded and its price.

Monopolist

An entity that is the sole provider of a particular product or service in a market, thereby controlling its price.

Downward-Sloping

A term often used in economics to describe a line or curve on a graph that depicts a decrease in one variable as another variable increases, commonly seen in demand curves.

Demand Curve

A graph showing the relationship between a product's price and the quantity of the product that consumers are willing and able to buy, typically downward sloping.