Multiple Choice
Consider the market for bicycles. If a dealer cuts prices by 10 percent and sells 20 percent more bikes, then demand for bicycles is:
A) inelastic, and total revenue will increase.
B) elastic, and total revenue will increase.
C) inelastic, and total revenue will decrease.
D) elastic, and total revenue will decrease.
E) unit elastic, and total revenue will remain the same.
Correct Answer:
Verified
Correct Answer:
Verified
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