If Pete Raises the Price of His Muffins from $2

question 24

Multiple Choice

If Pete raises the price of his muffins from $2 to $3 and his sales revenue increases from $35 000 to $38 000, then:

• A) the demand for Pete's muffins in this range is price elastic.
• B) the demand for Pete's muffins in this range is price inelastic.
• C) the demand for Pete's muffins in this range is unit elastic.
• D) the percentage change in quantity demanded must exceed the percentage change in product price.

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