Suppose There Is an Increase in the Cost of Resources

Multiple Choice

Suppose there is an increase in the cost of resources used in the production of good A. Then

A) if the price of A rises, we know the demand for A is elastic.
B) if the total revenue from sales of A rises, we know the demand for A is elastic.
C) if the total revenue from sales of A falls, we know the demand for A is elastic.
D) total revenue will increase because the price of A must rise.
E) total revenue must fall because the quantity bought and sold of A must fall.