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Which of the following statements is correct? A. When the price of a good increases, total revenue tends to increase due to the price effect and tends to decrease due to the sales effect. B. When the price of a good increases, total revenue tends to decrease due to the price effect and tends to increase due to the sales effect. C. A price increase always increases total revenue, because the seller collects a higher price on each unit sold. D. The cross-price elasticity of demand measures the extent to which the sales effect outweighs the price effect
Answers: 2
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Which of the following statements is correct? A. When the price of a good increases, total revenue t...
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