Price (dollars)87D.5101520253035Quantity (units per year)In the figure above, when the price falls from $8 to $7, total revenueA) decreases from $210 to $120 so demand is inelastic.B) increases from $120 to $210 so demand is inelastic.C) decreases from $210 to $120 so demand is elastic.D) increases from $120 to $210 so demand is elastic.6

Answered: Price (dollars) 8 7 'D 6 5 10 15 20 25…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section5.1: The Elasticity Of Demand

Problem 1QQ: Define the price elasticity of demand. Explain the relationship between total revenue and the price...

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Price (dollars)
8
7
D.
5
10
15
20
25
30
35
Quantity (units per year)
In the figure above, when the price falls from $8 to $7, total revenue
A) decreases from $210 to $120 so demand is inelastic.
B) increases from $120 to $210 so demand is inelastic.
C) decreases from $210 to $120 so demand is elastic.
D) increases from $120 to $210 so demand is elastic.
6

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Step 1: Introduction

You must track your overall revenue if you want to know how much money your company makes from all of the products and services it sells.

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