中等ECON-ELAS-015
A bookstore cuts the price of a bestseller by 10% and total revenue from the book rises. The price elasticity of demand for the book is:
A. Inelastic (less than 1)
B. Elastic (greater than 1)✓ 答案
C. Unit elastic (equal to 1)
D. Perfectly inelastic
解說
If total revenue rises when price falls, the percentage rise in quantity demanded exceeds the percentage fall in price, so demand is elastic.