Solved

A 25 Percent Decrease in the Price of Breakfast Cereal

Question 112

Multiple Choice

A 25 percent decrease in the price of breakfast cereal leads to a 20 percent increase in the quantity of cereal demanded. What will result?

A) Total revenue will decrease.
B) Total revenue will increase.
C) The elasticity of demand will decrease.
D) The elasticity of demand will increase.

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