The total revenue test says that if a price decrease leads to
A) an increase in total revenue, demand is income elastic.
B) a decrease in total revenue, demand is income inelastic.
C) a decrease in total revenue, demand is price inelastic.
D) a decrease in total revenue, supply is price inelastic.
E) a decrease in total revenue, supply is price elastic.
C) a decrease in total revenue, demand is price inelastic.
Economics
You might also like to view...
Explain the argument for why taxing externalities is an economically legitimate distortion
What will be an ideal response?
Economics
Which of the following flows from the government to the households?
a. Goods and services b. Resources of production c. Taxes d. Government services e. Loans
Economics