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The Total Revenue Test Says That If a Price Decrease

Question 48

Multiple Choice

The total revenue test says that if a price decrease leads to


A) an increase in total revenue, demand is income elastic.
B) a decrease in total revenue, demand is income inelastic.
C) a decrease in total revenue, demand is price inelastic.
D) a decrease in total revenue, supply is price inelastic.
E) a decrease in total revenue, supply is price elastic.

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