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When Demand Is Elastic, a Fall in Price Causes Total

Question 253

Multiple Choice

When demand is elastic, a fall in price causes total revenue to rise because


A) when price falls, quantity sold increases so total revenue automatically rises.
B) the increase in quantity sold is large enough to offset the lower price.
C) the percentage increase in quantity demanded is less than the percentage fall in price.
D) the demand curve shifts.

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