Multiple Choice
A 10 percent decrease in the price of energy bars leads to a 20 percent increase in the quantity of energy bars demanded. What can we conclude from this information?
A) Demand is elastic and total revenue will increase.
B) Demand is inelastic and total revenue will increase.
C) Demand is inelastic and total revenue will decrease.
D) Demand is unit elastic and total revenue will remain constant.
Correct Answer:
Verified
Correct Answer:
Verified
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