Which of the Following Is FALSE Regarding Inelastic Demand

question 155

Multiple Choice

Which of the following is FALSE regarding inelastic demand?

• A) Price elasticity of demand is less than 1 ( < 1).
• B) If a firm raises price, total revenues will go up.
• C) Price elasticity of demand is greater than 1 ( > 1).
• D) If a firm lowers price, total revenues will fall.

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Definitions:

Breach Of Contract

Occurs when one party fails to fulfill their obligations under a contract, leading to legal consequences for the defaulting party.

Contract Price

The total financial compensation agreed upon by all parties involved in a contract for the sale, purchase, or delivery of goods or services.

Market Price

The present cost for purchasing or selling an asset or service in a specific market.

Consequential Damages

Special damages that compensate for a loss that is not direct or immediate (for example, lost profits). The special damages must have been reasonably foreseeable at the time the breach or injury occurred in order for the plaintiff to collect them.