Multiple Choice
If a 10 percent cut in the price of video rentals at "That's Rentertainment" causes a 15 percent increase in the quantity of rentals demanded, then
A) total revenue will decrease
B) demand is price inelastic within that price range
C) demand is price elastic within that range
D) demand is unit elastic within that range
E) total revenue will remain the same
Correct Answer:
Verified
Correct Answer:
Verified
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