When Demand Is Relatively Inelastic, a 5% Increase in Price

question 63

Multiple Choice

When demand is relatively inelastic, a 5% increase in price will:

• A)​increase total revenue by more than 5%.
• B)​increase total revenue by less than 5%.
• C)​decrease total revenue by more than 5%.
• D)​decrease total revenue by less than 5%.

Distinguish between myths and facts regarding patterns and rates of suicide.

Understand the concept and criteria of psychiatric disorders, including symptoms and prevalence.

Distinguish between different anxiety disorders and their symptoms.

Identify symptoms and understand the underlying theories of mood disorders.

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Definitions:

Decreasing-cost Industry

An industry where the cost per unit of output decreases as the scale of production increases.

Long-run Equilibrium Price

The price level at which the quantity supplied equals the quantity demanded, achieved over a period where all inputs can be varied by producers.

Increase in Demand

A situation where there is a rise in consumers' desire to purchase goods or services, leading to higher quantity demanded at every price level.

Constant Costs

Occur when the cost of producing an additional unit of a good does not change as the scale of production increases or decreases.