Multiple Choice
Suppose that a coffee shop faces a demand curve that is liner and that the current price for its cup of coffee is set at a point where the price elasticity is 1.2.If the local dry cleaner shop increases the price per garment,demand becomes ________ elastic and total revenue ________.
A) more; decreases
B) more; increases
C) less; increases
D) less; decreases
Correct Answer:
Verified
Correct Answer:
Verified
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