If the Short Run Elasticity of Demand for a Good

question 190

Multiple Choice

If the short run elasticity of demand for a good was greater than 1, an increase in the price of the good would tend to:

• A)​increase total revenue in both the short run and the long run.
• B)​increase total revenue in the short run but not the long run.
• C)​decrease total revenue in the short run and the long run, but by more in the short run.
• D)​decrease total revenue in the short run and the long run, but by more in the long run.

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Definitions:

Evidence-based Management

The practice of making managerial decisions based on the best available scientific evidence and data.

Simulated Settings

Artificially created environments designed to replicate real-life scenarios for training, testing, or research purposes.

Law of Reciprocity

A social norm suggesting that when someone does something for you, you naturally will want to reciprocate or return the favor in some manner.

Obligation

A duty or commitment to perform or refrain from performing specific actions.