If demand is elastic, an increase in price will decrease total revenue.

Name: If demand is elastic, an increase in price will decrease total revenue.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When demand is elastic, a small increase in price will lead to a larger decrease in quantity demanded, resulting in a decrease in total revenue. Conversely, a decrease in price will lead to a larger increase in quantity demanded, resulting in an increase in total revenue.

If Demand Is Elastic, an Increase in Price Will Decrease