If the Price Elasticity of Demand for Gasoline Equals 0

question 221

Multiple Choice

If the price elasticity of demand for gasoline equals 0.3,then an increase in the price of a gallon of gasoline from $3.70 to $3.90

• A) decreases total revenue.
• B) increases total revenue.
• C) leads to no change in total revenue.
• D) makes the demand for gasoline elastic.
• E) Both answers B and D are correct.

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