Author Question: When a 2 percent increase in price generates a greater than 2 percent decrease in quantity demanded, ... (Read 133 times)

captainjonesify · **on:** Jun 30, 2018

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.