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If the Short Run Elasticity of Demand for Widgets Is

question 186

Multiple Choice

If the short run elasticity of demand for widgets is 0.4 and the long run elasticity of demand for widgets is 0.95, a decrease in price will ____ total revenue in the short run and ____ total revenue in the long run.


Definitions:

Calories

Units of energy in food; the fuel our bodies use for energy.

Cane Sugar

Refined sugar obtained from the sugarcane plant, often used as a sweetener in foods and beverages.

Lean Meat

Meat that has a relatively low content of fat, often recommended for a healthy diet.

Vegan Diet

A dietary choice that excludes all animal products and derivatives, focusing solely on plant-based foods.

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