Suppose That Demand Is Inelastic Within a Certain Price Range

question 170

Multiple Choice

Suppose that demand is inelastic within a certain price range.For that price range,

• A)an increase in price would increase total revenue because the decrease in quantity demanded is proportionately less than the increase in price.
• B)an increase in price would decrease total revenue because the decrease in quantity demanded is proportionately greater than the increase in price.
• C)a decrease in price would increase total revenue because the increase in quantity demanded is proportionately smaller than the decrease in price.
• D)a decrease in price would not affect total revenue.

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Definitions:

Supply Chain

A global network of organizations and activities that supplies a firm with goods and services.

Disaster Risk

The potential loss or damage that may result from interactions between natural or human-induced hazards and vulnerable conditions.

Number of Suppliers

Refers to the total count of distinct suppliers that a company uses or maintains relationships with for procuring goods or services.

Unique-Event Risk

Risk associated with a specific and non-recurring event that can affect the outcome of a project or investment.