Multiple Choice
Which of the following concerning the relationship between elasticity and total revenue is true?
A) Price elasticity and total revenue are not related.
B) When demand for a good is unit elastic, any price change within the unit elastic price range changes total revenue by one.
C) When demand for a good is price inelastic, total revenue increases when price increases.
D) When demand for a good is price elastic, total revenue increases when price increases.
E) Total revenue is maximized when the price elasticity of demand is zero.
Correct Answer:
Verified
Correct Answer:
Verified
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