If the Quantity Effect Outweighs the Price Effect of a Price

question 68

Multiple Choice

If the quantity effect outweighs the price effect of a price decrease,then:

• A)the good is price elastic.
• B)total revenue will rise.
• C)the measured elasticity must be more than 1.
• D)All of these are true.

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Definitions:

Quality Cost Report

A report that details the costs associated with ensuring product or service quality, including prevention, appraisal, and failure costs.

Prevention Cost

Costs incurred to avoid producing defective products, including expenses related to quality training, equipment maintenance, and process improvement.

Quality Cost Report

A document summarizing the costs associated with preventing, detecting, and rectifying product defects, including the costs of quality control measures.

Manufacturing Cycle Efficiency

A metric that measures the ratio of productive manufacturing time to total cycle time, aiming to assess production efficiency.