If the demand for donuts is elastic,then a decrease in the price of donuts will
A)increase total revenue of donut sellers.
B)decrease total revenue of donut sellers.
C)not change total revenue of donut sellers.
D)There is not enough information to answer this question.

Question

Quizplus · Accepted Answer

When demand is elastic, a decrease in price leads to a proportionally larger increase in quantity demanded, thus increasing total revenue.

If the Demand for Donuts Is Elastic,then a Decrease in the Price