Suppose That Chris Had Been Charging $1

Multiple Choice

Suppose that Chris had been charging $1.00 per pound for potatoes.When Chris lowered the price to $0.90 per pound,total revenue fell.When Chris raised the price to $1.10,total revenue also fell.Why?

A) $1.00 is the equilibrium price for potatoes.
B) At 90 cents,there is excess demand for potatoes.
C) $1.10 is more than Chris's customers' reservation prices.
D) Price elasticity of demand is unitary at $1.00.