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

question 168

Multiple Choice

Holding all other forces constant,if increasing the price of a good leads to an increase 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 increase always leads to an increase in total revenue.

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Definitions:

Behavioral

Relating to or concerned with the actions or activities of organisms in response to external or internal stimuli.

Limited Problem Solving

A consumer decision-making process used for purchases that require a moderate amount of effort and time for information gathering and deliberation.

Past Experience

Previous events or activities that an individual or organization has encountered, affecting their behavior or decisions.

External Information

Information that originates outside an organization, which can influence decisions and strategies, including market trends, economic indicators, and competitive data.