When Demand Is Elastic,a Decrease in Price Will Cause

question 103

Multiple Choice

When demand is elastic,a decrease in price will cause

• A)an increase in total revenue.
• B)a decrease in total revenue.
• C)no change in total revenue but an increase in quantity demanded.
• D)no change in total revenue but a decrease in quantity demanded.

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Definitions:

Warranty

A promise, typically by a manufacturer or seller, regarding the condition or performance of a product.

Premium

An amount paid for an insurance policy or in broader terms, can represent a fee or price paid for higher quality or superior service.

Universal Life Insurance

A form of straight life insurance that allows the policy owner flexibility in choosing and changing terms of the policy.

Policy Owner

The individual or entity that holds and controls an insurance policy and has the right to exercise all privileges under the contract.