Suppose that at the price dollars the demand for a product is elastic. If the price is decreased, what will happen to revenue?
A) increase
B) decrease
C) stay the same

Question

Suppose that at the price  dollars the demand for a product is elastic. If the price is decreased, what will happen to revenue?
A) increase 
B) decrease 
C) stay the same

Quizplus · Accepted Answer

If the demand for a product is elastic, a decrease in price will lead to an increase in quantity demanded by a greater proportion, resulting in an overall increase in revenue, according to the law of demand. Therefore, choice A is the best option.

Suppose That at the Price Dollars the Demand for a Product