A cut in the price increases total revenue.Demand is
A)inelastic.
B)unit elastic.
C)perfectly inelastic.
D)equal to supply.
E)elastic.

Name: A cut in the price increases total revenue.Demand is A)inelastic. B)unit elastic. C)perfectly inelastic. D)equal to supply. E)elastic.
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Question

Quizplus · Accepted Answer

When a cut in price increases total revenue, it indicates that demand is elastic. In elastic demand, a change in price leads to a larger change in quantity demanded, resulting in a bigger change in total revenue.

A Cut in the Price Increases Total Revenue