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Figure: The Demand for Notebook Computers
-(Figure: Demand for Notebook Computers) Look at the figure The Demand for Notebook Computers. The change in total revenue resulting from a change in price from P to T suggests that demand is:
A) inelastic.
B) price-elastic.
C) price-inelastic.
D) price unit-elastic.

Question

Use the following to answer questions:
Figure: The Demand for Notebook Computers 
-(Figure: Demand for Notebook Computers) Look at the figure The Demand for Notebook Computers. The change in total revenue resulting from a change in price from P to T suggests that demand is:
A) inelastic. 
B) price-elastic. 
C) price-inelastic. 
D) price unit-elastic.

Quizplus · Accepted Answer

When the price decreases from P to T and total revenue increases, it indicates that demand is price-elastic. This is because the percentage increase in quantity demanded is greater than the percentage decrease in price.

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