Knowing the Price Elasticity of Demand Is Important in Business

question 18

Multiple Choice

Knowing the price elasticity of demand is important in business because:

• A)it allows a manager to determine whether a price increase will cause total revenue to rise or fall.
• B)it allows a manager to determine whether an increase in supply will cause total profit to rise or fall.
• C)it allows a manager to determine how to maximize the firm's profits.
• D)it allows a manager to determine whether a price increase will cause the demand to rise or fall.

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Definitions:

Registered

Officially recorded or enlisted on an official list or directory.

Lease of Over Three Years

A legal agreement granting possession and use of property for a period exceeding three years, subject to specific conditions.

Landlord

An individual or entity that owns property and permits another party to use it in exchange for rent.

Parcel of Land

A parcel of land is a specific piece or tract of land, often defined by boundaries for purposes of ownership, development, or sale.