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Inelastic Demand Exists When

Question 13

Multiple Choice

Inelastic demand exists when:


A) an increase in price causes a larger increase in quantity demanded and total revenue falls to zero.
B) the quantity demanded remains the same regardless of level of price and total revenue is unchanged.
C) a small percentage decrease in price produces a larger percentage increase in quantity demanded and total revenue increases.
D) a small percentage decrease in price produces a smaller percentage increase in quantity demanded and total revenue falls.

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