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When Kelsey Decreases Her Price of Lipstick from $7 to $5,she

Question 64

Multiple Choice

When Kelsey decreases her price of lipstick from $7 to $5,she finds that her sales increase from 6 to 7.She faces ________ demand for her product,and this price change will ________ her total revenue.


A) elastic; raise
B) inelastic; lower
C) unitary elastic; not change
D) perfectly elastic; raise
E) perfectly inelastic; lower

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