If the demand for bananas is elastic,then an increase in the price of bananas will
A)increase total revenue of banana sellers.
B)decrease total revenue of banana sellers.
C)not change total revenue of banana sellers.
D)There is not enough information to answer this question.

Question

Quizplus · Accepted Answer

If the demand for bananas is elastic, then an increase in the price of bananas will lead to a more than proportionate decrease in the quantity demanded of bananas, which means the total revenue of banana sellers will decrease. This is because the decrease in quantity demanded will outweigh the increase in price per unit, resulting in a net decrease in total revenue.

If the Demand for Bananas Is Elastic,then an Increase in the Price