ACME Corp.'s widgets have elastic demand. If ACME raises the price of widgets, what will be the result?

ACME Corp.'s widgets have elastic demand. If ACME raises the price of widgets, what will be the result?



a. an increase in market share

b. a decrease in total revenue

c. a decrease in market share

d. a decrease in product inventory

e. an increase in total revenue


Answer: b. a decrease in total revenue


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