If a Decrease in Price Causes Total Revenue to Increase

question 32

Multiple Choice

If a decrease in price causes total revenue to increase, an estimate of the absolute value of the price elasticity of demand will be:

• A) greater than zero but less than one.
• B) equal to one.
• C) greater than one.
• D) equal to zero.

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Definitions:

Variable-Interval Schedule

is a type of reinforcement schedule in which responses are rewarded after unpredictable time intervals, leading to consistent and stable response rates over time.

Fixed Amount of Time

A specific, unchangeable duration designated for a particular task or activity.

Varying Amounts of Time

Pertains to instances or situations where the duration or period can differ significantly, not fixed or consistent.

Unconditioned Response

A response that occurs naturally in reaction to an unconditioned stimulus, without the need for prior learning.