If a firm increases the price of its product and total revenue increases, then the price elasticity of demand must be less than -1.

Name: If a firm increases the price of its product and total revenue increases, then the price elasticity of demand must be less than -1.
Brand: Quizplus
Rating: 4.9 (39 reviews)

Question

Quizplus · Accepted Answer

When total revenue increases as price increases, it indicates that the demand is inelastic, meaning the price elasticity of demand is greater than -1 but less than 0.

If a Firm Increases the Price of Its Product and Total