If a 20 Percent Decrease in the Price of a Good

question 50

Multiple Choice

If a 20 percent decrease in the price of a good leads to a 15 percent increase in the quantity demanded, then demand is ________ and total revenue will ________ as a result of the fall in price.

• A) elastic; increase
• B) elastic; decrease
• C) inelastic; increase
• D) inelastic; decrease

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Definitions:

Power Rangers

A long-running entertainment franchise centered around a team of young heroes who transform into costumed characters to fight evil forces.

Homicide Rates

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