Multiple Choice
-In the figure above, when the price falls from $8 to $7, total revenue
A) increases from $120 to $210 so demand is inelastic.
B) decreases from $210 to $120 so demand is inelastic.
C) increases from $120 to $210 so demand is elastic.
D) decreases from $210 to $120 so demand is elastic.
E) increases from $120 to $210, but more information is needed to determine whether demand is elastic, inelastic or unit elastic.
Correct Answer:
Verified
Correct Answer:
Verified
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