When Demand Is Elastic, a Fall in Price Causes Total

question 253

Multiple Choice

When demand is elastic, a fall in price causes total revenue to rise because

• A)when price falls, quantity sold increases so total revenue automatically rises.
• B)the increase in quantity sold is large enough to offset the lower price.
• C)the percentage increase in quantity demanded is less than the percentage fall in price.
• D)the demand curve shifts.

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Definitions:

Sensory Fibers

Nerve fibers that transmit sensory information from the body to the central nervous system.

Motor Fibers

Nerve fibers that transmit impulses from the brain or spinal cord to muscles or glands, orchestrating their movement or activity.

Schwann Cells

The principal glia of the peripheral nervous system, responsible for the formation of myelin.

Peripheral Nervous System

The part of the nervous system outside the brain and spinal cord, comprising nerves that connect the central nervous system to limbs and organs, essential for relaying sensory and motor information.