Multiple Choice
Why do revenues increase when producers decrease the price of an elastically demanded good?
A) Increased sales more than make up for the loss in revenue per unit sold.
B) Marginal costs decrease when the price of an elastically demanded good decreases.
C) Marginal benefits increase when the price of an elastically demanded good decreases.
D) They don't. Revenues increase when the price of an inelastic good decreases.
Correct Answer:
Verified
Correct Answer:
Verified
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