Determine which of the following options are accurate if there is an increase in price of the good at point D, based on the given graph: с e 14 P r 10 i $ 12 00 8 6 4 2 0 A B 3 Quantity demanded

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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Chapter3: Demand Analysis
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Determine which of the following options are accurate if there is an increase in price of the good
at point D, based on the given graph:
i
P
r 10
1 -
14
12
(5)
00
с
e 6
10
4
2
0
11)
1
A
2
B
C
3
Quantity demanded
There will be an increase in total revenue.
There will be movement towards the elastic portion of the demand curve
There will be a decline in the quantity demanded.
a) Statements 1,2 and 3 are correct.
b) Only statement 2 is correct.
c) All the statements are incorrect.
d) Statements 1 and 2 are correct.
Transcribed Image Text:Determine which of the following options are accurate if there is an increase in price of the good at point D, based on the given graph: i P r 10 1 - 14 12 (5) 00 с e 6 10 4 2 0 11) 1 A 2 B C 3 Quantity demanded There will be an increase in total revenue. There will be movement towards the elastic portion of the demand curve There will be a decline in the quantity demanded. a) Statements 1,2 and 3 are correct. b) Only statement 2 is correct. c) All the statements are incorrect. d) Statements 1 and 2 are correct.
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