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Figure 5-7 -Refer to Figure 5-7.If Rectangle D Is Larger Than Rectangle

Question 115

Multiple Choice

Figure 5-7
Figure 5-7 -Refer to Figure 5-7.If rectangle D is larger than rectangle A,then A) demand is elastic between prices P₁ and P₂. B) a decrease in price from P₂ to P₁ will cause an increase in total revenue. C) the magnitude of the percent change in price between P₁ and P₂ is smaller than the magnitude of the corresponding percent change in quantity demanded. D) All of the above are correct.
-Refer to Figure 5-7.If rectangle D is larger than rectangle A,then

A) demand is elastic between prices P₁ and P₂.
B) a decrease in price from P₂ to P₁ will cause an increase in total revenue.
C) the magnitude of the percent change in price between P₁ and P₂ is smaller than the magnitude of the corresponding percent change in quantity demanded.
D) All of the above are correct.

Correct Answer: