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:

PRIZM Lifestyle Segmentation

A marketing tool used to categorize consumers into different groups based on their socio-economic status, lifestyle, and consumer behavior.

Demographic Segmentation

The division of a market into subsets based on variables such as age, gender, income, education, and family size for marketing purposes.

Geographic Component

Refers to the elements related to the physical location and spatial characteristics crucial for analysis in geography and related disciplines.

Household Size

The number of individuals living together in a single home environment, often used in market segmentation and demographic studies.