If 400 Apple Pies Are Sold at $4 Per Pie

question 69

Multiple Choice

If 400 apple pies are sold at $4 per pie, but 500 apple pies are sold at $3 per pie, we know from the total revenue rule:

• A)​that the demand for pies is elastic over that price range.
• B)​that the demand for pies is inelastic over that price range.
• C)​that the demand for pies is unit elastic over that price range.
• D)​nothing about the elasticity of demand.