Multiple Choice
All of the following are true regarding the relationship between price elasticity of demand and total revenues EXCEPT
A) when market demand is elastic, if the market price declines, then total revenues will rise.
B) when market demand is unit elastic, if the market price rises, then total revenues will not change.
C) when market demand is inelastic, if the market price falls, then total revenues will decrease.
D) when market demand is inelastic, if the market price rises, then total revenues will decrease.
Correct Answer:
Verified
Correct Answer:
Verified
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