Question 28
MediumOriginal questionA shopkeeper lowers the price of a good and finds that his total sales revenue from it falls. Demand for the good is
Show the answer and explanation
CorrectNot quiteAnswer D
Correct answer: D
Explanation
Buyers' spending is the seller's revenue. Price down and spending down means demand is inelastic.
- Concept
- Revenue and elasticity
- Typical timeTypical
- 70 s
- Your timeYours
- —
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