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When is demand considered elastic?
When is demand considered elastic?
- When the slope of the demand curve is constant
- When the percentage change in price is greater than the percentage change in quantity demanded
- When marginal revenue is positive
- When the percentage change in quantity demanded is greater than the percentage change in price (correct)
What does it mean when demand is inelastic?
What does it mean when demand is inelastic?
- The percentage change in quantity demanded is less than the percentage change in price (correct)
- Marginal revenue is negative
- The slope of the demand curve is constant
- Total revenue increases when quantity increases
What is the relationship between marginal revenue and total revenue when marginal revenue is negative?
What is the relationship between marginal revenue and total revenue when marginal revenue is negative?
- Total revenue increases when quantity increases
- Total revenue decreases when quantity increases (correct)
- Marginal revenue must be less than price for all units
- Marginal revenue is equal to 0
When is total revenue maximized in relation to marginal revenue?
When is total revenue maximized in relation to marginal revenue?
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What does the slope of the demand curve indicate when the price is higher?
What does the slope of the demand curve indicate when the price is higher?
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When is demand considered inelastic?
When is demand considered inelastic?
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What does the slope of the demand curve indicate when the price is higher?
What does the slope of the demand curve indicate when the price is higher?
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When is total revenue maximized in relation to marginal revenue?
When is total revenue maximized in relation to marginal revenue?
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What is the relationship between marginal revenue and total revenue when marginal revenue is negative?
What is the relationship between marginal revenue and total revenue when marginal revenue is negative?
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What does it mean when demand is elastic?
What does it mean when demand is elastic?
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