alleryMatch revenue rules: 1. High: p. Cut price 2. Low: q. Cut fall 3. Unit: r. Unchanged
A1-p, 2-q, 3-r
B1-p, 2-r, 3-q
C1-q, 2-p, 3-r
D1-r, 2-p, 3-q
Answer & Solution
Correct answer: A. 1-p, 2-q, 3-r
When demand is elastic, lowering prices increases revenue; when inelastic, price cuts reduce revenue; when unitary, revenue is unaffected.
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