Which of the Following Could Be the Price Elasticity of Demand

question 84

Multiple Choice

Which of the following could be the price elasticity of demand for a good for which an increase in price would decrease revenue?

• A) 0
• B) 0.5
• C) 1
• D) 1.5

---

Definitions:

Total Revenue

The entire amount of income generated by the sale of goods or services related to a company's primary operations.

Variable Costs

Expenses that change in proportion to the activity of a business, such as costs for raw materials or labor.

Fixed Costs

Fixed Costs are business expenses that do not change with the level of goods or services produced by the company.

Marginal Cost

The additional cost incurred by producing one more unit of a good or service.