In the market for computers,if the demand curve is elastic and the price of a computer decreases,we expect total revenue to _____.If the demand curve is inelastic and the price of a computer decreases,we expect total revenue to _____.
A)increase;decrease
B)increase;increase
C)decrease;increase
D)decrease;decrease

Question

Quizplus · Accepted Answer

When demand is elastic, a decrease in price leads to a proportionally larger increase in quantity demanded, raising total revenue. Conversely, when demand is inelastic, a decrease in price doesn't lead to a sufficient increase in quantity demanded to offset the lower price, thus reducing total revenue.

In the Market for Computers,if the Demand Curve Is Elastic