If a store sells a good with elastic demand, then a decrease in the price would lead to
A) an increase in total revenue.
B) a decrease in total revenue.
C) a decrease in the quantity sold.
D) no change total revenue.

Question

Quizplus · Accepted Answer

When demand is elastic, a decrease in price leads to a proportionally larger increase in the quantity demanded, which increases total revenue.

If a Store Sells a Good with Elastic Demand, Then