Question

If the price elasticity of demand for apples is 3, then what will be the impact on total revenue if price increases?

A Total revenue will increase Correct Answer Incorrect Answer
B Total revenue will not change Correct Answer Incorrect Answer
C Total revenue will decrease Correct Answer Incorrect Answer
D Total revenue triples Correct Answer Incorrect Answer
E Total revenue will fall to zero Correct Answer Incorrect Answer

Solution

TR decreases for goods with elastic price elasticity.

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