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47

Economics

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47.Suppose that the above total revenue curve is derived from a particular linear demand curve. That demand curve must be:

A.elastic for price increases that reduce quantity demanded from 8 units to 7 units.

B.inelastic for price increases that reduce quantity demanded from 4 units to 3 units.

C.elastic for price declines that increase quantity demanded from 6 units to 7 units.

D.inelastic for price declines that increase quantity demanded from 6 units to 7 units.