If a good is price elastic,an increase in price will increase total revenues.

Name: If a good is price elastic,an increase in price will increase total revenues.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

If a good is price elastic, an increase in price will cause a greater decrease in quantity demanded. This decrease in quantity demanded will offset the increase in price, resulting in a decrease in total revenue. Therefore, if a good is price elastic, an increase in price will decrease total revenues.

If a Good Is Price Elastic,an Increase in Price Will