If the Supply Schedule for Tin Is Relatively Inelastic to Price

question 43

Multiple Choice

If the supply schedule for tin is relatively inelastic to price changes,a decrease in the demand schedule for tin will cause a:

• A) Decrease in price and an increase in sales revenue
• B) Decrease in price and a decrease in sales revenue
• C) Increase in price and an increase in sales revenue
• D) Increase in price and a decrease in sales revenue

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Definitions:

Accrued Interest

Interest that has been incurred but not yet paid.

Initial Loan

The original amount of money borrowed or the starting balance of a loan before any payments or interest are applied.

Compound Annual

Refers to the method of calculating interest where interest is added to the principal, so that, from that moment on, the interest that has been added also earns interest.

Rate of Growth

The pace at which a quantity, such as an economic variable or a population, increases over a specific period.