Exhibit 5-6 -We Can Tell That Demand Is Elastic as Price Falls

question 201

Multiple Choice

Exhibit 5-6
-We can tell that demand is elastic as price falls between point a and point b in Exhibit 5-6 because

• A) quantity demanded is increasing
• B) total revenue is increasing
• C) total revenue is decreasing
• D) total revenue is unchanged
• E) the demand curve slopes downward

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The total expense for human labor directly involved in the production of goods or services.

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