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Total Revenue Test
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Problem 10
Total Revenue Test
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4. Elasticity / Total Revenue Test / Problem 6
Problem 6
On a graph showing total revenue, if the area representing the price effect is equal to the area representing the quantity effect after a price change, what does this indicate?
A
Total revenue decreases, indicating inelastic demand
B
Total revenue increases, indicating elastic demand
C
Total revenue cannot be determined from the graph
D
Total revenue remains unchanged, indicating unit elastic demand
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