A firm's revenue is price per unit times the quantity sold, so an increase in price decreases revenue if demand is elastic.

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Quizplus · Accepted Answer

This is because when the price increases, the quantity demanded decreases more than enough to offset the increase in the price, resulting in a decrease in revenue. This is only true if demand is elastic, as if demand is inelastic, a price increase may result in an increase in revenue as the quantity demanded does not decrease significantly.

A Firm's Revenue Is Price Per Unit Times the Quantity