All of the following are true regarding the relationship between price elasticity of demand and total revenues EXCEPT
A) when market demand is elastic, if the market price declines, then total revenues will rise.
B) when market demand is unit elastic, if the market price rises, then total revenues will not change.
C) when market demand is inelastic, if the market price falls, then total revenues will decrease.
D) when market demand is inelastic, if the market price rises, then total revenues will decrease.
D
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Correlation of the regression error across observations
A) results in incorrect OLS standard errors. B) makes the OLS estimator inconsistent, but not unbiased. C) results in correct OLS standard errors if heteroskedasticity-robust standard errors are used. D) is not a problem in cross-sections since the data can always be "reshuffled."
The highest income quintile receives about ______% of all income.
Fill in the blank(s) with the appropriate word(s).