If demand is elastic, a lower price will produce more revenue.

Name: If demand is elastic, a lower price will produce more revenue.
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Quizplus · Accepted Answer

This is because as the price decreases, the quantity demanded will increase by a greater proportion, resulting in a larger increase in total revenue (price x quantity). This relationship between price and revenue is described by the price elasticity of demand formula, where revenue is maximized at the price level where demand is unit elastic.

If Demand Is Elastic, a Lower Price Will Produce More