When demand is elastic,an increase in price will cause
A)an increase in total revenue.
B)a decrease in total revenue.
C)no change in total revenue but an increase in quantity demanded.
D)no change in total revenue but a decrease in quantity demanded.

Question

Quizplus · Accepted Answer

When demand is elastic, a change in price will have a greater impact on the quantity demanded. An increase in price will result in a larger decrease in quantity demanded, leading to a decrease in total revenue. Therefore, Option B is correct.

When Demand Is Elastic,an Increase in Price Will Cause