If 400 apple pies are sold at $4 per pie, but 500 apple pies are sold at $3 per pie, we know from the total revenue rule:
A)that the demand for pies is elastic over that price range.
B)that the demand for pies is inelastic over that price range.
C)that the demand for pies is unit elastic over that price range.
D)nothing about the elasticity of demand.

Question

If 400 apple pies are sold at $4 per pie, but 500 apple pies are sold at $3 per pie, we know from the total revenue rule:
A)​that the demand for pies is elastic over that price range.
B)​that the demand for pies is inelastic over that price range.
C)​that the demand for pies is unit elastic over that price range.
D)​nothing about the elasticity of demand.

Quizplus · Accepted Answer

The Answer of If 400 apple pies are sold at $4 per pie, but 500 apple pies are sold at $3 per pie, we know from the total revenue rule:
A)​that the demand for pies is elastic over that price range.
B)​that the demand for pies is inelastic over that price range.
C)​that the demand for pies is unit elastic over that price range.
D)​nothing about the elasticity of demand.

If 400 Apple Pies Are Sold at $4 Per Pie