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.

---

Definitions:

Multiple Cutoff Model

A selection-decision model that requires an applicant to achieve some minimum level of proficiency on all selection dimensions.

Minimum Score

A predetermined lowest acceptable performance, achievement, or quality level.

Statistical Approach

A method involving the collection, analysis, interpretation, and presentation of data to solve problems or make decisions.

Objective Approach

A method or perspective that is based on facts and devoid of personal feelings or biases, aiming for impartiality and accuracy.