(P $$pageTag$$ ) Refer to the Above Graph

Multiple Choice

(p. $$pageTag$$ ) Refer to the above graph. Consider a situation where price increases from P3 to P4. In this price range, demand is relatively

A) inelastic because the loss in total revenue (areas E + F + G) is greater than the gain in total revenue (area A) .
B) elastic because the loss in total revenue (areas E + F + G) is greater than the gain in total revenue (area A) .
C) elastic because the loss in total revenue (area A) is greater than the gain in total revenue (areas E + F + G) .
D) inelastic because the loss in total revenue (area A) is greater than the gain in total revenue (areas E + F + G) .