Solved

When a 2 Percent Increase in Price Generates a Greater

Question 54

Multiple Choice

When a 2 percent increase in price generates a greater than 2 percent decrease in quantity demanded, then:


A) demand is inelastic.
B) total revenue increases as a result of the price increase
C) total revenue decreases as a result of the price increase.
D) demand is unit elastic.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions