Multiple Choice
Suppose the price of a good is $6 and quantity demanded is 10 units. When price decreases to $5, quantity demanded increases to 13 units. What happened to total revenue and what does this indicate?
A) Total revenue decreased from $65 to $60, indicating that demand is inelastic.
B) Total revenue decreased from $65 to $60, indicating that demand is elastic.
C) Total revenue increased from $60 to $65, indicating that demand is inelastic.
D) Total revenue increased from $60 to $65, indicating that demand is elastic.
Correct Answer:
Verified
Correct Answer:
Verified
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