When a 2 percent increase in price generates a greater than 2 ...

[captainjonesify]

When a 2 percent increase in price generates a greater than 2 percent decrease in quantity demanded, then:
 a. demand is price inelastic.
  b. total revenue increases.
  c. demand is positively sloped.
  d. demand is unit elastic.
  e. total revenue decreases.

Question 2

If demand is price elastic, then when price decreases, total revenue:
 a. decreases.
  b. increases.
  c. does not change.
  d. is less than one.
  e. is negative.

[Mochi]

Answer to Question 1

e

Answer to Question 2

b

[captainjonesify]

Thanks for the timely response, appreciate it

[debra928]

Gracias!