Assume That the Price Elasticity of Demand Is -0

question 28

Multiple Choice

Assume that the price elasticity of demand is -0.75 for a certain firm's product. If the firm lowers price, the firm's managers can expect total revenue to:

• A) decrease.
• B) increase.
• C) remain constant.
• D) either increase or remain constant, depending upon the size of the price decrease.

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