If the price of a product with elastic demand increases
A) total revenue will fall.
B) total revenue will be unchanged.
C) total revenue will rise.
D) the effect on total revenue cannot be predicted with the information given.

Question

Quizplus · Accepted Answer

When demand is elastic, an increase in price leads to a proportionally larger decrease in quantity demanded, resulting in a decrease in total revenue.

If the Price of a Product with Elastic Demand Increases