If a firm's total revenue INCREASES when the price of its product is reduced from $90 to $50, the demand for this product between these two points is:
A) inelastic.
B) unitary elastic.
C) elastic.
D) Cannot tell from what is given.

Question

Quizplus · Accepted Answer

When the price is reduced from $90 to $50 and the total revenue increases, it indicates that the demand for the product is elastic. This means that the change in price has a proportionately larger effect on the quantity demanded, leading to an increase in revenue.

If a Firm's Total Revenue INCREASES When the Price of Its