Holding all other forces constant, if raising the price of a good results in less total revenue, the demand for the good must be:
A)elastic
B)inelastic
C)unit elastic
D)perfectly inelastic

Question

Quizplus · Accepted Answer

If raising the price of a good results in less total revenue, it means that the percentage decrease in quantity demanded is greater than the percentage increase in price. This is only possible when the demand for the good is elastic, as inelastic demand would result in an increase in total revenue with a price increase.

Holding All Other Forces Constant, If Raising the Price of a Good