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Using the Method of Arc Elasticity to Calculate Price Elasticity

Question 125

Multiple Choice

Using the method of arc elasticity to calculate price elasticity of demand eliminates the problem of:


A) different elasticities, depending on whether price decreases or increases.
B) different elasticities, because price and quantity are inversely related on the demand curve.
C) total revenue falling when price falls and demand is inelastic.
D) total revenue increasing when price falls and demand is elastic.

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