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Question 13 0.25 pts 13. Price elasticity of demand is known to be - 0.7, and the firm lowers price by 10%. Then which of the
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Ans) the correct option is d) revenue will fall because the increase in the quantity demanded cannot offset the lower price

Quantity demanded will increase by 7%. Since the demand is inelastic so decrease in price will not lead to large increase in quantity demanded so revenue will fall

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