If the Demand Faced by a Firm Is Inelastic,selling One

question 16

Multiple Choice

If the demand faced by a firm is inelastic,selling one more unit of output will

• A)increase revenues.
• B)decrease revenues.
• C)keep revenues constant.
• D)increase profits.

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Definitions:

Lawn Mower

A machine equipped with revolving blades to cut grass to an even length, typically used in garden and lawn maintenance.

Bubbles

Economic phenomena characterized by rapid increases in asset prices to levels significantly above their fundamental values, followed by abrupt crashes.

Demand

The desire combined with the ability to purchase a specific quantity of a good or service at a particular price and time.

Supply

The total amount of a product or service available for purchase at any given price point in a market.