Total Revenue Will Increase If Price

question 228

Multiple Choice

Total revenue will increase if price

• A)rises and demand is elastic.
• B)rises and demand is unit elastic.
• C)falls and demand is inelastic.
• D)falls and demand is elastic.

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Definitions:

Rigid Cost-plus Pricing

A pricing strategy where a fixed percentage is added to the total cost of producing a product to determine its selling price, without flexibility for market changes.

Export Markets

Countries or regions where goods and services are sold abroad, outside the producing country's borders.

Penetration Pricing Strategy

A strategy where a company sets the price of a product very low to get customers to try it.

Market Share

The portion of a market controlled by a particular company or product, often expressed as a percentage of total sales in that market.