Holding All Other Forces Constant,if Decreasing the Price of a Good

question 112

Multiple Choice

Holding all other forces constant,if decreasing the price of a good leads to a decrease in total revenue,then the demand for the good must be

• A)unit elastic.
• B)inelastic.
• C)elastic.
• D)None of the above is correct because a price decrease never leads to an decrease in total revenue.

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Definitions:

Purchase Price

The amount of money paid or to be paid by the buyer to acquire ownership of a good, service, or property.

Federal Law

Legislation enacted by the national government of a country; in the United States, laws passed by Congress and signed by the President.

State Law

Laws and regulations enacted by individual states, distinct from federal laws, governing within their territories.

Nonnegotiable

Refers to instruments or contracts that cannot be transferred or assigned from one party to another in a legally binding manner.