If a Firm Lowered the Price of the Product It

question 236

Multiple Choice

If a firm lowered the price of the product it sells and found that total revenue did not change, then the demand for its product is

• A)perfectly inelastic.
• B)perfectly elastic.
• C)unit elastic.
• D)relatively elastic.

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Definitions:

Recognized Gains

Profits from the sale of an asset that are realized and subject to capital gains tax.

Tax Bracket

A range of income subject to a particular income tax rate. Tax systems often have several brackets, with individuals paying a higher rate as their income increases.

Investment Income

This refers to the money that someone earns from their investments, like dividends, interest, or rental income.

Gifted Stock

Equity in a company given to someone at no cost, often as part of an estate planning strategy to transfer wealth or as an incentive or reward.