As You Move Up Along a Straight-Line Demand Curve

question 332

Multiple Choice

As you move up along a straight-line demand curve,

• A) the price elasticity of demand decreases in size.
• B) the price elasticity of demand increases in size.
• C) total revenue always decreases.
• D) total revenue always increases.
• E) total revenue never changes.

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Definitions:

Purchasing Power

The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy.

Public-Works Projects

Government-funded projects designed to create infrastructure benefiting the public, such as roads, bridges, and schools.

Direct Relief

A form of assistance given directly to needy individuals and families by government or charitable organizations, typically in the form of food, housing, or medical aid.

Industrial Wages

The payment or compensation given to workers in manufacturing, factories, and other sectors within the industrial part of the economy.