Multiple Choice
If the price elasticity of demand for Rip's Punch is 1.5 and he increases the price for each bottle, total revenue will
A) increase because the selling price has increased.
B) increase because the percentage change in quantity demanded will be greater than the percentage change in price.
C) decrease because the percentage change in quantity demanded will be less than the percentage change in price.
D) decrease because the percentage change in quantity demanded will be greater than the percentage change in price.
Correct Answer:
Verified
Correct Answer:
Verified
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