If Demand Is Price Elastic, a Decrease in Price Causes

question 209

Multiple Choice

If demand is price elastic, a decrease in price causes:

• A) an increase in total revenue.
• B) a decrease in total revenue.
• C) no change in total revenue.
• D) an increase in quantity, but anything can happen to revenue.

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Definitions:

Pie Chart

A circular statistical graphic which is divided into slices to illustrate numerical proportion.

Cumulative Frequency Distribution

A frequency distribution that shows frequencies for class intervals along with the cumulative frequency at each.

Frequency Distribution

A summary of how often different values occur within a dataset, typically organized into a table or graph.

Class Intervals

The range of values within which a data point in a frequency distribution falls, often represented in grouped data.