If a Firm Decreases the Price of a Good and Total

question 24

Multiple Choice

If a firm decreases the price of a good and total revenue decreases,then

• A)the demand for this good is price elastic.
• B)the demand for this good is price inelastic.
• C)the cross elasticity is negative.
• D)the income elasticity is less than 1.

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Definitions:

Economic Factors

Elements that influence the behavior of an economy, including inflation, employment rates, and growth rate.

Life Expectancy

The average period that an individual is expected to live based on demographic factors.

Health Expectancy

An estimate of how many years an individual can expect to live in a state of good health, taking into account current rates of morbidity and mortality.

African Americans

An ethnic or racial group in the U.S. that can trace its heritage to any of Africa's black racial groups.