CA CPT Model Test Paper 7 with solutions for online practice

Question : 116 of 200

Marks: +1, -0

If a good has price elasticity greater than one then:

demand is unit elastic and a change in price does not affect sellers' revenue.
demand is elastic and a change in price causes sellers' revenue to change in the opposite direction.
demand is inelastic and a change in price causes sellers' revenue to change in the same direction.
None of the above is correct.

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