For a good that is price elastic, a fall in price will ____.
A) shift the demand curve for the good to the left
B) lead to a decrease in the quantity demanded of the good
C) lead to a rise in the total revenue earned by the ﬁrm
D) cause the supply curve for the good to become steeper

Question

Quizplus · Accepted Answer

For a good that is price elastic, a fall in price will lead to a proportionally larger increase in the quantity demanded, thereby increasing the total revenue earned by the firm.

For a Good That Is Price Elastic, a Fall in Price