If demand is price elastic, a decrease in price will result in an increase in total revenue.

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If demand is price elastic, a decrease in price will result in a proportionately larger increase in quantity demanded, leading to an overall increase in total revenue. Conversely, if demand is price inelastic, a decrease in price will result in a proportionately smaller increase in quantity demanded, leading to an overall decrease in total revenue.

If Demand Is Price Elastic, a Decrease in Price Will