If the demand is elastic, the total revenue test of price elasticity will show a/an:
A) decrease in revenue and a price decrease.
B) increase in revenue and a price decrease.
C) increase in revenue and a price increase.
D) decrease in revenue and a price increase.

Question

Quizplus · Accepted Answer

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

If the Demand Is Elastic, the Total Revenue Test of Price