If an increase in price causes total revenue to decrease,we can conclude that demand is price elastic.

Name: If an increase in price causes total revenue to decrease,we can conclude that demand is price elastic.
Brand: Quizplus
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Quizplus · Accepted Answer

This is because when demand is price elastic, consumers are responsive to changes in price and will decrease their quantity demanded when faced with a price increase. As a result, the decrease in quantity demanded outweighs the increase in price, causing total revenue to decrease.

If an Increase in Price Causes Total Revenue to Decrease,we