If an increase in price leads to a decrease in total revenue,
A)demand is elastic.
B)demand is inelastic.
C)demand is unit elastic.
D)there is not enough information to determine the elasticity of demand.

Question

Quizplus · Accepted Answer

This is because in elastic demand, a change in price leads to a greater change in quantity demanded, resulting in the total revenue decreasing when the price increases.

If an Increase in Price Leads to a Decrease in Total