Total revenue increased for a firm operating in the elastic range of its demand curve.Which of the following statements is correct?
A)The firm must have raised price.
B)The firm must have lowered price.
C)Quantity demanded must have increased.
D)both a and c
E)both b and c

Question

Quizplus · Accepted Answer

In the elastic range of the demand curve, lowering the price leads to a proportionately larger increase in quantity demanded, which increases total revenue. Thus, both lowering the price (B) and an increase in quantity demanded (C) are correct.

Total Revenue Increased for a Firm Operating in the Elastic