If the Price Elasticity of Demand for Petrol Equals 0

question 10

Multiple Choice

If the price elasticity of demand for petrol equals 0.3, then an increase in the price of a litre of petrol from $3.70 to $3.90

• A) leads to no change in total revenue.
• B) makes the demand for petrol elastic.
• C) increases total revenue.
• D) decreases total revenue.
• E) Both answers B and D are correct.

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