Solved

If a 20 Percent Decrease in the Price of a Good

Question 50

Multiple Choice

If a 20 percent decrease in the price of a good leads to a 15 percent increase in the quantity demanded, then demand is ________ and total revenue will ________ as a result of the fall in price.


A) elastic; increase
B) elastic; decrease
C) inelastic; increase
D) inelastic; decrease

Correct Answer:

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