7. If the absolute value of the own price elasticity of steak is 0.4, a decrease in price will lead to: A. a reduction in total revenue. B. an increase in total revenue. C. no change in total revenue. D. None of the preceding statements is correct.
7. If the absolute value of the own price elasticity of steak is 0.4, a decrease in price will lead to: A. a reduction in total revenue. B. an increase in total revenue. C. no change in total revenue. D. None of the preceding statements is correct.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Why the answer is A?
Transcribed Image Text:7. If the absolute value of the own price elasticity of steak is 0.4, a decrease in price will lead
to:
A. a reduction in total revenue.
B. an increase in total revenue.
C. no change in total revenue.
D. None of the preceding statements is correct.
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