An increase in total revenue results occurs from which of the ...

[Haya94]

An increase in total revenue results occurs from which of the following?
 a. Price decreases when demand is inelastic.
  b. Price increases when demand is elastic.
  c. Price decreases when demand is elastic.
  d. Price increases when demand is unitary elastic.

Question 2

Suppose the Pleasant Corporation cuts the price of its American Girl dolls by 10 percent, and as a result, the quantity of the dolls sold increases by 25 percent. This indicates that the price elasticity of demand for the dolls over this range is:
 a. 2.5.
  b. 0.4.
  c. 0.5.
  d. 5.0.

[sierramartinez]

Answer to Question 1

c

Answer to Question 2

a

[Haya94]

Excellent

[ktidd]

Thanks for the timely response, appreciate it