When Price Decreases and Total Revenue Falls,demand Is

question 134

Multiple Choice

When price decreases and total revenue falls,demand is:

• A) elastic
• B) inelastic
• C) absolute
• D) unitary
• E) stable

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Definitions:

Units

Fundamental quantities used to measure, count, or quantify objects or events.

Diminishing Marginal Utility

See Law of Diminishing Marginal Utility.

Satisfaction

The contentment one feels when one's needs, desires, or expectations are fulfilled or surpassed.

Diminishing Marginal Utility

A principle stating that as a consumer consumes more of a good or service, the utility (satisfaction) gained from each additional unit decreases.