Assume that the price elasticity of demand is -0.25 for a certain firm's product. If the firm increases price, the firm's managers can expect total revenue to A) decrease. B) increase. C) remain constant. D) either increase or remain constant depending upon the size of the price increase.

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Normal and Inferior Goods

Understanding a normal good and an inferior good is important because it tells us what will happen to demand different products during booms and recessions.