An Increase in Total Revenue Will Result If

question 40

Multiple Choice

An increase in total revenue will result if

• A) demand is inelastic and price decreases.
• B) demand is elastic and price decreases.
• C) demand is elastic and price increases.
• D) demand is unitary elastic and price increases.

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Definitions:

Supply and Demand Curves

Graphical representations that show the relationship between the prices of goods and services and their quantities supplied and demanded in the market.

Pound/Dollar Market

A foreign exchange market where the British pound and the US dollar are traded, indicating the exchange rate between these two currencies.

Exchange Rate

The value of one currency for the purpose of conversion to another, impacting international trade and economics.

Freely Fluctuating Exchange Rates

Exchange rates that are determined by the open market forces of supply and demand without direct government intervention.