P Is in Dollars and Q Is the Number of Units

question 51

Multiple Choice

p is in dollars and q is the number of units. Find the elasticity of the demand function at and use it to determine how a price increase will affect total revenue. ​

• A) Since the demand is elastic, an increase in price will decrease the total revenue.
• B) Since the demand is elastic, an increase in price will increase the total revenue.
• C) Since the demand is inelastic, an increase in price will decrease the total revenue.
• D) Since the demand is inelastic, an increase in price will increase the total revenue.
• E) No change in revenue.