Which Determines Whether a Company Will Earn Higher Revenues When

question 34

Multiple Choice

Which determines whether a company will earn higher revenues when it raises its price?

• A)The cost of the inputs.
• B)Government regulation of the industry.
• C)Consumer demand.
• D)Companies always earn higher revenues when they increase price.

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Definitions:

American Citizens

Individuals who hold citizenship in the United States of America, either by birth or naturalization.

Inelastic Good

A product or service whose demand does not significantly change with a change in its price, indicating consumers' necessity or lack of substitutes.

Gasoline Expenditures

The total amount of money spent by consumers on gasoline, encompassing both retail purchases for vehicles and other uses.

Public Transportation

A system of vehicles such as buses, trains, and subways, provided by the government or private companies, for the purpose of transporting large numbers of people.