To answer the question, refer to the following table showing a demand schedule: If price falls from $200 to $150,

A. arrows representing the price and quantity effects both point down.
B. total revenue moves in the same direction as the arrow representing the price effect.
C. arrows representing the price and quantity effects both point up.
D. an arrow representing the price effect points down and is longer than an arrow for the quantity effect.
E. an arrow representing the price effect points down and is shorter than an arrow for the quantity effect.


Answer: E

Economics

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