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:

Federal Law

encompasses laws passed by the national government of the United States.

Artisan's Lien

A legal claim granted to artisans or mechanics against the property they have serviced or improved, ensuring payment for their work.

Real Property

Land and anything permanently attached to it, such as buildings and fixtures, legally recognized as immovable.

Consensual Lien

A security interest that is agreed upon by the debtor and creditor to secure payment or performance of an obligation.