In the Elastic Portion of a Linear Demand Curve, Firm

question 102

Multiple Choice

In the elastic portion of a linear demand curve, firm revenue ______ when price falls.

• A) increases
• B) decreases
• C) remains the same
• D) changes in an indeterminate direction

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Definitions:

Recency Effect

The tendency to remember and give greater importance to the most recently presented information or experiences when recalling a list or sequence.

Actor-Observer Effect

A cognitive bias in which people attribute their own actions to external factors while attributing others’ actions to their personal traits or dispositions.

Individuation

The development of an individual's sense of self and distinct identity through psychological, emotional, and spiritual growth.

Discrimination

Unjust or prejudicial treatment of different categories of people or things, especially on the grounds of race, age, or sex.