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.

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 2.4P

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Why the answer is A?

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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