Multiple Choice
If the short run elasticity of demand for widgets is 1.1 and the long run elasticity of demand for widgets is 3.6, an increase in price will ____ total revenue in the short run and ____ total revenue in the long run.
A) Increase; increase.
B) Increase; decrease.
C) Decrease; increase.
D) Decrease; decrease.
Correct Answer:
Verified
Correct Answer:
Verified
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