If the price elasticity of demand is 1.5, a price decrease will cause total revenue to increase.

Name: If the price elasticity of demand is 1.5, a price decrease will cause total revenue to increase.
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Quizplus · Accepted Answer

If the price elasticity of demand is greater than 1 (in this case, it is 1.5), a price decrease will result in a proportionally larger increase in quantity demanded, which will lead to an overall increase in total revenue.

If the Price Elasticity of Demand Is 1