demand is price elastic and price decreases, then Select one: O a. the extra revenue from the extra units sold is less than the loss in revenue from the lower price O b. the extra revenue from the extra units sold is exactly offset by the loss in revenue due to the lower price O c. the extra revenue from the extra un

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter5: Elastic And Its Application
Section: Chapter Questions
Problem 3PA: Suppose the price elasticity of demand for heating oil is 02. in the short run and 0.7 in the long...
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If demand is price elastic and price decreases, then

Select one:

O a. the extra revenue from the extra units sold is less than the loss in revenue from the lower price

O b. the extra revenue from the extra units sold is exactly offset by the loss in revenue due to the lower price

O c.

the extra revenue from the extra units sold exceeds the loss in revenue from the lower price

O d.

more information is necessary to determine what happens to total revenue

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