If Total Revenue Increases When Price Increases

question 14

Multiple Choice

If total revenue increases when price increases:

• A) demand is elastic.
• B) demand is inelastic.
• C) demand is unit elastic.
• D) Any of these could be true.

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Definitions:

Time Value

The principle that having money now is preferable to receiving the same sum later on, as it has greater earning potential.

Graphic Portrayal

Graphic portrayal involves the visual representation of data or concepts, using charts, graphs, or other graphical tools to illustrate relationships and trends.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage.

Present Value

The actual value today of future monetary amounts or cash flow series, determined by a specified rate of return.