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If the price elasticity of demand for gasoline is 0.20, 1. the demand for gasoline is linear. 2. a rise in the price of gasoline will reduce total revenue. 3. a 10 percent rise in the price of gasoline will decrease the amount purchased by 2 percent. 4. a 10 percent fall in the...

If the demand for farm products is price inelastic, a good harvest will cause farm revenues to 1. increase. 2. decrease. 3. be unchanged. 4. either increase or decrease, depending on what happens to supply.