Knowing the Price Elasticity of Demand Is Important in Business

question 70

Multiple Choice

Knowing the price elasticity of demand is important in business because it allows a manager to determine whether:

• A) a price increase will cause total revenue to rise or fall.
• B) an increase in supply will cause total profit to rise or fall.
• C) a price increase will cause the quantity demanded to rise or fall.
• D) a price increase will cause the demand to rise or fall.

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Definitions:

Mastaba

Arabic, “bench.” An ancient Egyptian rectangular brick or stone structure with sloping sides erected over a subterranean tomb chamber connected with the outside by a shaft.

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Religious structures in ancient Egypt, constructed to serve as homes for the gods or goddesses, with architectural features designed for worship and processions.

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Methods and processes used in the construction of structures, from ancient to modern practices, including materials, structural support, and design principles.

Ashlar Masonry

Carefully cut and regularly shaped blocks of stone used in construction, fitted together without mortar.