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

question 267

Multiple Choice

Holding all other forces constant,if increasing 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 increase always leads to an decrease in total revenue.

---

Definitions:

Controllable Costs

Expenses that a manager or business has the power to influence or change in the short term.

Managerial Responsibility

The obligation of managers to make decisions and take actions that maximize the value and effectiveness of an organization.

Top Management

The highest level of managers within an organization, responsible for setting policies, strategic planning, and making significant corporate decisions.

Return on Investment (ROI)

A measure used to evaluate the efficiency of an investment or to compare the efficiency of several different investments, calculated as net profit divided by the cost of the investment.