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:

Physical Attachment

The process of affixing or connecting an object to another, often in a manner that requires physical force or means.

Injury

Physical harm or damage to a person's body caused by an accident or external force.

Personal Property

Movable items owned by an individual or corporation, as opposed to real estate or real property.

Restrictive Covenant

A provision in a deed or lease restricting the actions the property's owner may take with the property.