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.
D)The price elasticity of demand for Good X is equal to 1.

Question

Quizplus · Accepted Answer

When the price of a good falls and total revenue rises, it indicates that the quantity demanded increases by a larger percentage than the percentage decrease in price, which is characteristic of elastic demand.

If the Price of Good X Falls and Total Revenue