If demand is price elastic, it is certain that:
A) any change in price will decrease total revenue.
B) a decrease in price will lower total revenue.
C) an increase in price will lower total revenue.
D) total revenue is at a maximum.

Question

Quizplus · Accepted Answer

When demand is price elastic, an increase in price will lead to a proportionally larger decrease in quantity demanded, thus lowering total revenue.

If Demand Is Price Elastic, It Is Certain That