If the Price of Good X Falls and Total Revenue

question 75

Multiple Choice

If the price of Good X falls and total revenue rises,then

• A)Demand for Good X is inelastic.
• B)Demand for Good X is unitary elastic.
• C)Demand for Good X is elastic.
• D)The price elasticity of demand for Good X is equal to 1.

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Definitions:

Long-Run Equilibrium

A state in which all factors of production and economic variables are in balance, with no external pressures forcing change.

Demand Decreases

A situation where the quantity of a product or service that consumers are willing to buy at a given price drops, often due to changes in preferences, income, or substitutes.

Industry Exit

The process or act of businesses leaving a particular market or industry, often due to unfavorable conditions or better opportunities elsewhere.

Long-Run Equilibrium

A state in a market where all factors of production are fully utilized, leading to a situation where supply equals demand, with no external pressures to change.