Jim owns a pharmacy where he sells COVID tests. At the start of the year, he raised the price from $10 to $20. His total revenue for the year was more than the previous year. What does this tell us about the price elasticity of demand for Jim's COVID tests going from a price of $10 to S20? O It's inelastic. O It's elastic. O We cannot infer anything about the price elasticity of demand from this information. O It's unit elastic.

Jim owns a pharmacy where he sells COVID tests. At the start of the year, he raised the price from $10 to $20. His total revenue for the year was more than the previous year. What does this tell us about the price elasticity of demand for Jim's COVID tests going from a price of $10 to S20? O It's inelastic. O It's elastic. O We cannot infer anything about the price elasticity of demand from this information. O It's unit elastic.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 28CTQ: Would you expect supply to play a more significant role in determining the price of a basic...

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