Ceteris Paribus,an Increase in Price Will Increase Total Revenue If

question 116

True/False

Ceteris paribus,an increase in price will increase total revenue if the price elasticity of demand is 1.3.

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Definitions:

Tax Revenue

The financial earnings that governments obtain through taxation.

Price Ceiling

A legally imposed limit on the price that can be charged for a good or service.

Shortage

A situation in which the demand for a product or service exceeds its supply in a market.

Units

Units refer to the individual, standardized quantities of a product or measurement used for counting, assessment, or comparison.