Answer
a) the demand curve is inelastic
Work Step by Step
If a curve is inelastic, then there must be a large price increase to the item. A large price increase will decrease demand for the item (and revenue will decrease).
Principles of Economics, 7th Edition
by Mankiw, N. Gregory
Published by
South-Western College
ISBN 10:
128516587X
ISBN 13:
978-1-28516-587-5
Chapter 5 - Part II - Elasticity and its Application - Quick Check Multiple Choice - Page 108: 5
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