If a Change in Price Causes Total Revenue to Change

question 21

Multiple Choice

If a change in price causes total revenue to change in the same direction, we can conclude that the demand is:

• A) price inelastic.
• B) price elastic.
• C) unit price elastic.
• D) normal.

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Definitions:

Compounded Monthly

Interest calculation where interest is added to the principal balance each month, leading to an increase in the total interest earned over time.

Ordinary Annuity

A sequence of identical payments made consistently during a defined timeframe.

Compounded Semi-Annually

Interest calculation method where the interest is added to the principal at half-year intervals, leading to an increase in the amount of subsequent interest.

Compounded Quarterly

Refers to the process where interest is added to the principal amount four times a year at regular quarterly intervals.