When Demand Is Elastic

question 44

Multiple Choice

When demand is elastic

• A) changes in price and changes in total revenue move in the same direction.
• B) there is no relationship between changes in price and changes in total revenue.
• C) changes in price and changes in total revenue move in opposite directions.
• D) for any change in price, total revenue will not change.

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Definitions:

Financial Advantage

The benefit obtained in financial terms, giving an entity a superior position relative to competitors or market average.

Intermediate Products

Goods that are produced by a business as part of the production process of another final product or service.

Sugar Cane

A tropical grass cultivated for its tall stalks, which are the primary source of sugar.

Industrial Fiber

Materials, often synthetic, used in the manufacture of products requiring strength, durability, or specific technical properties, such as textiles and composites.