If the Demand for a Good Is Price-Elastic, a Cut

Multiple Choice

If the demand for a good is price-elastic, a cut in price will:

A) lead to an increase in quantity demanded and an increase in the firm's revenue.
B) not affect the total revenue of the firm.
C) lead to a fall in the firm's revenue but an increase in quantity demanded.
D) lead to a decrease in quantity demanded.
E) decrease the firm's revenue by the same percentage as the cut in price.