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Consider the Demand Curve in the Graph Shown

Question 85

Multiple Choice

Consider the demand curve in the graph shown. Suppose price is initially $11 and falls to $8. Which of the following statements is true? A) The quantity effect will outweigh the price effect, and total revenue will rise. B) The quantity effect will outweigh the price effect, and total revenue will fall. C) The price effect will outweigh the quantity effect, and total revenue will rise. D) The price effect will outweigh the quantity effect, and total revenue will fall. Consider the demand curve in the graph shown. Suppose price is initially $11 and falls to $8. Which of the following statements is true?


A) The quantity effect will outweigh the price effect, and total revenue will rise.
B) The quantity effect will outweigh the price effect, and total revenue will fall.
C) The price effect will outweigh the quantity effect, and total revenue will rise.
D) The price effect will outweigh the quantity effect, and total revenue will fall.

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