Which of the following statements about price elasticity of demand is true?

Which of the following statements about price elasticity of demand is true?



A.

Price elasticity with unitary demand is less than 1.


B.

The more substitutes a product has, the less likely it is to be price elastic.


C.

With inelastic demand, a reduction in price increases total revenue.


D.

With inelastic demand, price elasticity is less than 1.



Answer: D


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