Ceteris paribus,an increase in price will increase total revenue if the price elasticity of demand is 1.3.

Name: Ceteris paribus,an increase in price will increase total revenue if the price elasticity of demand is 1.3.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

If the price elasticity of demand is greater than 1 (elastic), an increase in price will decrease total revenue because the percentage drop in quantity demanded will be greater than the percentage increase in price.

Ceteris Paribus,an Increase in Price Will Increase Total Revenue If