Related to the Economics in Practice on page 102: Frank runs a corner delicatessen and one day decides to raise his prices by 10 percent. Total revenue is likely to at the end of the first month of the higher prices since demand is relatively elastic in the run.

Fall, long

Explanation:

The law of demand states that an increase in price results in a decrease in the quantity of goods demanded, and a fall in the price of a good will result in a rise in the quantity demanded.

The corner delicassen decides to raise its prices by 10%. Even if the demand is not elastic in the short run, in the long run the law of demand applies and there will be a fall in total revenue from sales because of relative elasticity of demand in the long run.

answerbuying in bulk;