Economics 0455 · IGCSE · Price elasticity of demand (PED)

Price elasticity of demand (PED) — practice question

The price elasticity of demand for a product is greater than one. What will happen to total revenue if the product’s price is cut by $3\%$?

  • AIt will fall by more than $3\%$.
  • BIt will fall to zero.
  • CIt will be unchanged.
  • DIt will rise.

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