If an increase in prices increases total revenue for a product in the short run, in the long run, it will:
A)Increase total revenue by more.
B)Increase total revenue by less.
C)Decrease total revenue.
D)Either b. or c. could result in the long run.

Question

Quizplus · Accepted Answer

In the long run, demand may become more elastic as consumers find substitutes or change their consumption habits, leading to either a smaller increase or a decrease in total revenue.

If an Increase in Prices Increases Total Revenue for a Product