If a rise in price decreases total revenue,then the price elasticity of demand is
A)negative.
B)zero.
C)greater than zero but less than 1.
D)equal to 1.
E)greater than 1.

Question

Quizplus · Accepted Answer

If a rise in price decreases total revenue, it means that the demand is elastic, which implies the price elasticity of demand is greater than 1. This means that a small percentage change in price results in a larger percentage change in the quantity demanded.

If a Rise in Price Decreases Total Revenue,then the Price