If the Demand for a Good Is Price-Elastic, a Cut

question 4

Multiple Choice

If the demand for a good is price-elastic, a cut in price will:

• A) lead to an increase in quantity demanded and an increase in the firm's revenue.
• B) not affect the total revenue of the firm.
• C) lead to a fall in the firm's revenue but an increase in quantity demanded.
• D) lead to a decrease in quantity demanded.
• E) decrease the firm's revenue by the same percentage as the cut in price.

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Definitions:

Green Alga

Single-celled, colonial, or multicelled photosynthetic protist that has chloroplasts containing chlorophylls a and b.

Prokaryotic

Cells that lack a true, membrane-bound nucleus and most other organelles, characteristic of organisms such as bacteria.

Protozoans

Diverse group of unicellular eukaryotic organisms, often considered the simplest animal life forms, living in water or as parasites.