Suppose a Firm Can Not Figure Out Whether the Demand

question 144

Multiple Choice

Suppose a firm can not figure out whether the demand for the good it sells is elastic or inelastic but discovers that every time it raises its price, its total revenue declines. Their

• A)demand is unit elastic.
• B)demand is inelastic.
• C)demand is elastic.
• D)demand is perfectly inelastic.

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Definitions:

Regression

A defense mechanism leading an individual to revert to a previous phase of psychological development, often under stress or frustration.

Reprimanded

Officially warned or punished, usually in a professional or formal context, for a wrongdoing or mistake.

Defence Mechanism

Mental tactics used subconsciously to shield an individual from distress caused by intolerable ideas or emotions.

Projection

A defense mechanism where an individual attributes their own unacceptable thoughts, feelings, or motives to another person.