What Is the Effect of a 10 Percent Price Increase

question 67

Multiple Choice

What is the effect of a 10 percent price increase on total revenue if 1 is less than elasticity and elasticity is less than infinity?

• A)Revenue increases by 10 percent.
• B)Revenue increases by less than 10 percent.
• C)Revenue does not change.
• D)Revenue decreases.
• E)Revenue drops to 0.

---

Definitions:

Voluntary Act

A behavior or action undertaken by an individual willingly, without coercion.

Observable

Capable of being seen or noticed through direct observation.

Constructionists

Advocates of constructionism, a theory that suggests knowledge and reality are not objective but constructed by societal or cultural contexts.

Social Control

Mechanisms, strategies, and institutions society uses to regulate individual and group behavior, aiming to conform to norms and rules.