If the Demand Faced by a Firm Is Elastic,selling One

question 22

Multiple Choice

If the demand faced by a firm is elastic,selling one less unit of output will

• A)increase revenue.
• B)decrease revenue.
• C)keep revenues constant.
• D)decrease price.

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Definitions:

Intelligence

denotes the capacity for learning, understanding, and applying knowledge and skills and the ability to adapt to new situations.

Clayton Act

A piece of U.S. legislation enacted in 1914 aimed at promoting fair competition and preventing monopolies and unethical business practices.

Exclusive Dealing

A contractual arrangement in which a seller agrees to sell its products to only one particular buyer, or a buyer agrees to purchase from only one seller, limiting competition.

Tying Arrangements

A business practice where a seller requires the buyer to purchase other products as a condition of getting the desired product.