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Remembering that demand elasticity is defined as the percentage change in quantity divided by the percentage change in price, if price decreases and, in percentage terms, quantity rises more than price has dropped, total revenue will 1. either increase or decrease.2. remain the same. 3. decrease.4. increase.

Respuesta :

Answer:

4. increase

Explanation:

If price decreases and, in percentage terms, quantity rises more than price, it means demand is elastic.

For example ,if price falls by 1% and quantity demanded increases by 5%, total revenue would definitely increase.

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