If demand for a seller's product is elastic, a price decrease will increase total revenue.

Name: If demand for a seller's product is elastic, a price decrease will increase total revenue.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When demand is elastic, a decrease in price will cause a relatively larger increase in quantity demanded, resulting in a greater total revenue. This is because the percentage increase in quantity sold is greater than the percentage decrease in price.

If Demand for a Seller's Product Is Elastic, a Price