If the Absolute Price Elasticity of Demand of a Good

question 255

Multiple Choice

If the absolute price elasticity of demand of a good is 1.46, then the total revenues will increase if its market price

• A) increases.
• B) decreases.
• C) stays the same.
• D) changes, but we can't tell without more information if the price increases or decreases.

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Definitions:

Specified Price

A determined cost set for a product or service, agreed upon by the seller and the buyer.

Rule 506

A provision of the Securities Act that allows companies to raise unlimited capital through private placements without extensive registration with the SEC.

Regulation D

A set of SEC regulations offering exemptions from the registration requirements for certain private placements of securities.

Securities Act of 1933

A U.S. law enacted to regulate the offer and sale of securities, primarily aimed at preventing deceit, misrepresentations, and other fraud in the securities industry.