When Can a Firm Lower Prices and Still Increase Revenue

question 166

Multiple Choice

When can a firm lower prices and still increase revenue?

• A) when the elasticity of demand is equal to unity
• B) when the demand curve is horizontal
• C) when the demand curve is vertical
• D) when the demand is inelastic
• E) when the demand is elastic

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Definitions:

Voluntary Manslaughter

In criminal law, a killing that results when a criminal defendant is in a state of extreme fright, terror, anger, or blind rage.

Second-Degree Murder

A serious criminal offense that involves killing another person without premeditation, but with malice aforethought, or under circumstances showing an indifference to human life.

Shoplifter

A person who steals merchandise from a retail establishment.

Extortion

The act of taking another’s property with consent when such consent is coerced by threat to injure a victim’s person, property, or reputation.