If the price of Good X falls and total revenue rises,then
A)Demand for Good X is inelastic.
B)Demand for Good X is unitary elastic.
C)Demand for Good X is elastic.

Question

Quizplus · Accepted Answer

If the price of Good X falls and total revenue rises, it means that the demand for Good X is responsive to price changes, i.e., the demand for Good X is elastic. When the price falls, the quantity demanded increases enough to more than compensate for the lower price, leading to an increase in total revenue. This suggests that consumers are sensitive to price changes and will buy more of the Good when the price is reduced.

If the Price of Good X Falls and Total Revenue