If a 2 Percent Rise in Price Leads to a 4

question 107

Multiple Choice

If a 2 percent rise in price leads to a 4 percent decrease in quantity demanded, then demand is

• A)elastic and total revenue decreases.
• B)elastic and total revenue increases.
• C)inelastic and total revenue decreases.
• D)elastic, but we cannot tell what happens to total revenue without more information.
• E)total revenue decreases but we cannot tell if the demand is elastic or inelastic without more information.

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