If a demand curve were elastic within a price range, then:
A) marginal revenue would be negative within this price range.
B) lowering the price within this range would increase total revenue.
C) the marginal revenue curve would be above the demand curve in this range.
D) in this range, raising price would increase total revenue.
E) All of the above.

Question

Quizplus · Accepted Answer

If the demand curve is elastic within a price range, then lowering the price within this range would increase total revenue. This is because the increase in quantity demanded due to the price decrease outweighs the decrease in price per unit, resulting in a net increase in total revenue.

If a Demand Curve Were Elastic Within a Price Range