If a Decrease in Price Leads to a Decrease in Total

question 29

Multiple Choice

If a decrease in price leads to a decrease in total revenue,

• A)demand is elastic.
• B)demand is inelastic.
• C)demand is unit elastic
• D)there is not enough information to determine the elasticity of demand.

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Definitions:

Alveoli

Small air pockets in the lungs where oxygen and carbon dioxide are exchanged.

Epithelium

A layer of cells covering the body surfaces, lining cavities, and forming glandular tissue.

Larynx

The hollow muscular organ forming an air passage to the lungs and holding the vocal cords; also known as the voice box.

Pharynx

The muscular tube in humans and other vertebrates connecting the mouth and nasal cavities to the esophagus and larynx; plays a key role in swallowing and breathing.