If the elasticity of demand for cigarettes is 0.4,a seller should
A) Increase price to increase total revenue.
B) Decrease price to increase total revenue.
C) Reduce price to maximize profits.
D) Increase price because the percentage change in quantity demanded will be greater than the price effect.
Correct Answer:
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Q51: If the price elasticity of demand is
Q52: If demand is elastic,then
A)An increase in price
Q53: If the price of Good X falls
Q55: Total revenue is
A)Price times income.
B)Quantity sold times
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A)The income from
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Q58: Assume the price elasticity of demand for
Q59: A price change will have no effect
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