When a Firm Raises the Price of Its Product,what Happens

question 208

Multiple Choice

When a firm raises the price of its product,what happens to its total revenue?

• A) If demand is elastic, total revenue decreases.
• B) If demand is unit elastic, total revenue increases.
• C) If demand is inelastic, total revenue decreases.
• D) If demand is elastic, total revenue increases.
• E) If demand is unit elastic, total revenue decreases.

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Definitions:

Robert Sternberg

An American psychologist known for his work on intelligence, creativity, wisdom, and love, including the development of Sternberg's Triangular Model of Love.

Semanticity

The quality of language in which words are used as symbols for objects, events, or ideas.

Divergent Thinking

A thought process that attempts to generate multiple solutions to problems.

Convergent Thinking

A thought process that narrows in on the single best solution to a problem.