Suppose the price elasticity of demand for orange juice equals​ -0.8. If there is a​ 10% increase in​ price, this will​ cause:           A. an​ 8% decrease in quantity demanded and an increase in total revenue for orange juice producers.   B. an​ 8% decrease in quantity demanded and a decrease in total revenue for orange juice producers.   C. ​12.5% decrease in quantity demanded and a decrease in total revenue for orange juice producers.   D. a​ 12.5% decrease in quantity demanded and an increase in total revenue for orange juice producers

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Suppose the price elasticity of demand for orange juice equals​ -0.8. If there is a​ 10% increase in​ price, this will​ cause:
 
 
 
 
 
A.
an​ 8% decrease in quantity demanded and an increase in total revenue for orange juice producers.
 
B.
an​ 8% decrease in quantity demanded and a decrease in total revenue for orange juice producers.
 
C.
​12.5% decrease in quantity demanded and a decrease in total revenue for orange juice producers.
 
D.
a​ 12.5% decrease in quantity demanded and an increase in total revenue for orange juice producers.
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