Demand Is Elastic When a Price ________ Results in Total

question 1

Multiple Choice

Demand is elastic when a price ________ results in total revenue ________.

• A) rise, decreasing
• B) fall, decreasing
• C) rise, increasing
• D) fall; remaining constant

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Definitions:

Arsenal of Democracy

A phrase used by President Franklin D. Roosevelt during World War II, describing the United States' role in supplying Allied nations with military materials.

Adam Smith

Scottish economist known as the father of modern economics, best known for his theory on free markets and the invisible hand guiding economies.

Specialization and Exchange

Economic strategy where individuals, regions, or nations focus on producing goods in which they have a comparative advantage, and then trade with others for what they need.

Trade Barriers

Measures implemented by governments to control or limit the volume of goods and services imported or exported, affecting international trade.