If a Change in the Price of a Good Results

question 43

Multiple Choice

If a change in the price of a good results in no change in total revenue,then

• A)the demand for the good must be elastic.
• B)the demand for the good must be inelastic.
• C)the demand for the good must be unit elastic.
• D)buyers must not respond very much to a change in price.

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Definitions:

Marginal Analysis

An examination of the additional benefits of an activity compared to the additional costs incurred by that same activity, emphasizing decisions at the margin.

Scarce

A term describing the limited availability of resources relative to the wants and needs for them, leading to the necessity of making economic choices.

Additional Benefit

An additional benefit refers to extra advantages or perks that come from using a product or engaging in an activity, beyond the primary gains.

Additional Cost

The extra cost that is incurred when an economic agent decides to increase the level of an activity or purchase.