If Demand Is Inelastic,a Reduction in Price Will Lead to a Drop

question 80

True/False

If demand is inelastic,a reduction in price will lead to a drop in total revenue.

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Definitions:

Circular Flow

An economic model that depicts how money and goods flow through the economy in a continuous loop between households and firms.

Profits

The financial gain obtained when the revenues generated from business activities exceed the expenses and costs incurred in operating the business.

Producing Units

Entities, either facilities or machinery, involved in the production process to manufacture goods or services.

Economy

The system of production, distribution, and consumption of goods and services in a particular geographic region or country.