What Happens When Demand Is Elastic in the Current Price

question 5

Multiple Choice

What happens when demand is elastic in the current price range

• A)An increase in price would increase total revenue because the decrease in quantity demanded is less than the increase in price.
• B)An increase in price would decrease total revenue because the decrease in quantity demanded is greater than the increase in price.
• C)A decrease in price would decrease total revenue because the increase in quantity demanded is smaller than the decrease in price.
• D)A decrease in price would not affect the total revenue.

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