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Use the Following for Questions 128-130

Question 121

Multiple Choice

Use the following for questions 128-130.
Exhibit: Nonlinear Demand Curve
Use the following for questions 128-130. Exhibit: Nonlinear Demand Curve    -(Exhibit: Nonlinear Demand Curve)  The values for quantity demanded along this nonlinear demand curve are given by the formula Q = 24/P.For this curve: A)  total revenue is constant at all prices. B)  price elasticity falls as price rises. C)  price elasticity rises as price rises. D)  demand is price inelastic throughout.
-(Exhibit: Nonlinear Demand Curve) The values for quantity demanded along this nonlinear demand curve are given by the formula Q = 24/P.For this curve:


A) total revenue is constant at all prices.
B) price elasticity falls as price rises.
C) price elasticity rises as price rises.
D) demand is price inelastic throughout.

Correct Answer:

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