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    Modern Principles of Economics Study Set 2
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    Exam 5: Elasticity and Its Applications
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    If the Demand for a Good Is Elastic, Then Firms
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If the Demand for a Good Is Elastic, Then Firms

Question 28

Question 28

Multiple Choice

If the demand for a good is elastic, then firms producing the good should ________ price in order to increase revenue.


A) increase
B) decrease
C) hold constant
D) either increase or decrease

Correct Answer:

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