If the price elasticity of demand for pasta is 2,then a 10% increase in the price will result in a decrease in total revenue.

Name: If the price elasticity of demand for pasta is 2,then a 10% increase in the price will result in a decrease in total revenue.
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Quizplus · Accepted Answer

With a price elasticity of demand greater than 1 (elastic demand), a 10% increase in price will lead to a more than proportional decrease in quantity demanded, thus reducing total revenue.

If the Price Elasticity of Demand for Pasta Is 2,then