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Assume That the Price Elasticity of Demand Is −2 for a Certain

Question 23

Multiple Choice

Assume that the price elasticity of demand is −2 for a certain firm's product.If the firm raises price,the firm's managers can expect total revenue to:


A) decrease.
B) increase.
C) remain constant.
D) either increase or remain constant, depending upon the size of the price increase.

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