What Is the Effect of a 10 Percent Price Increase

question 93

Multiple Choice

What is the effect of a 10 percent price increase on total revenue if elasticity is equal to 1?

• 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.

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Definitions:

Overnight Ground Service

A shipping service that promises delivery of packages to their destination the next business day via ground transportation.

CRM Solutions

Software systems designed to manage a company’s interactions and relationships with current and potential customers by organizing, automating, and synchronizing sales, marketing, customer service, and technical support.

EDI

Electronic Data Interchange, a standard for exchanging business information and documents between companies electronically.

Customer Service

The assistance and advice provided by a company to those people who buy or use its products or services.