If an increase prices increases total revenue in the short run, what will it do to total revenue in the long run?
A)It will decrease total revenue in the long run.
B)It will increase total revenue in the long run.
C)It will leave total revenue unchanged in the long run.
D)Any of the above results are possible in the long run.

Question

If an increase prices increases total revenue in the short run, what will it do to total revenue in the long run?
A)​It will decrease total revenue in the long run.
B)​It will increase total revenue in the long run.
C)​It will leave total revenue unchanged in the long run.
D)​Any of the above results are possible in the long run.

Quizplus · Accepted Answer

The long-term impact of a price increase on total revenue depends on various factors such as changes in consumer preferences, availability of substitutes, and elasticity of demand over time. Therefore, any of the outcomes mentioned could potentially occur in the long run.

If an Increase Prices Increases Total Revenue in the Short