According to the graph, when price falls from point $40 to $30 we know that demand must be

a. elastic, since total revenue increases from $8000 to $9000.
b. inelastic, since total revenue increases from $8000 to $9000.
c. inelastic, since total revenue decreases from $9000 to $8000.
d. unit elastic, since total revenue decreases from $9000 to $8000.


Ans: a. elastic, since total revenue increases from $8000 to $9000.

Economics

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