When demand is elastic, an increase in price will lead to an increase in total revenue

Question

Quizplus · Accepted Answer

When demand is elastic, an increase in price will lead to a decrease in quantity demanded that outweighs the increase in price, resulting in a decrease in total revenue. Conversely, a decrease in price will lead to an increase in quantity demanded that outweighs the decrease in price, resulting in an increase in total revenue.

When Demand Is Elastic, an Increase in Price Will Lead