If, as price increases by 10 percent, total revenue decreases by 10 percent, demand is
A)elastic.
B)unit elastic.
C)inelastic.
D)perfectly inelastic.

Name: If, as price increases by 10 percent, total revenue decreases by 10 percent, demand is A)elastic. B)unit elastic. C)inelastic. D)perfectly inelastic.
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Question

Quizplus · Accepted Answer

When total revenue decreases as price increases, it indicates that the percentage change in quantity demanded is greater than the percentage change in price, which characterizes elastic demand.

If, as Price Increases by 10 Percent, Total Revenue Decreases