Demand Is Price Inelastic When

question 249

Multiple Choice

Demand is price inelastic when:

• A) price falls and total revenue decreases.
• B) price increases and total revenue decreases.
• C) price decreases and total revenue stays the same.
• D) price decreases and total revenue goes up.

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Definitions:

Durian Juice Concentrate

A thick, reduced extract of durian fruit, used as a base for beverages, flavoring, or food products.

Variable Cost

Costs that vary directly with the level of production or service activity.

Decentralisation

The distribution of decision-making powers from central authority to lower-level employees or divisions in an organization.

Goal Congruence

A condition in which the goals of the company's various employees and departments align with the overall objectives of the organization.