The Total Revenue Test Says That If a Price Decrease

question 48

Multiple Choice

The total revenue test says that if a price decrease leads to

• A) an increase in total revenue, demand is income elastic.
• B) a decrease in total revenue, demand is income inelastic.
• C) a decrease in total revenue, demand is price inelastic.
• D) a decrease in total revenue, supply is price inelastic.
• E) a decrease in total revenue, supply is price elastic.

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