If demand is price elastic, a change in price in either direction (up or down) causes:
A) a change in total revenue in the opposite direction.
B) a change in total revenue in the same direction.
C) no change in total revenue.
D) an increase in total revenue.

Question

Quizplus · Accepted Answer

When demand is price elastic, a change in price in either direction will cause a proportionally larger change in the quantity demanded, resulting in a larger change in total revenue in the opposite direction. This means that if the price is increased, the total revenue will decrease, and if the price is decreased, the total revenue will increase.

If Demand Is Price Elastic, a Change in Price in Either