Multiple Choice
If Matthew raises the price of his muffins from $2 to $3 and his total revenue increases from $35,000 to $38,000, then
A) the demand for Matthew's muffins in this price range is price elastic
B) the demand for Matthew's muffins in this price range is price inelastic
C) the demand for Matthew's muffins in this price range is unit elastic
D) the percentage change in quantity demanded must exceed the percentage change in price
E) we know this is impossible because it violates the law of demand
Correct Answer:
Verified
Correct Answer:
Verified
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