If demand is elastic and price is lowered,total revenue will
A)rise.
B)fall.
C)stay the same.
D)possibly rise and possibly fall.

Name: If demand is elastic and price is lowered,total revenue will A)rise. B)fall. C)stay the same. D)possibly rise and possibly fall.
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Question

Quizplus · Accepted Answer

When demand is elastic, a decrease in price will lead to a relatively larger increase in quantity demanded. Therefore, the total revenue (price x quantity) will increase, resulting in a higher total revenue than before.

If Demand Is Elastic and Price Is Lowered,total Revenue Will