If the Short Run Elasticity of Demand for Widgets Is

question 36

Multiple Choice

If the short run elasticity of demand for widgets is 0.7 and the long run elasticity of demand for widgets is 1.5, an increase in price will ____ total revenue in the short run and ____ total revenue in the long run.

• A)​Increase; increase.
• B)​Increase; decrease.
• C)​Decrease; increase.
• D)​Decrease; decrease.

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