Demand is elastic along the upper half of a liner demand curve,so an increase in quantity from a decrease in price decreases total revenue.

Question

Quizplus · Accepted Answer

When demand is elastic, an increase in quantity from a decrease in price increases total revenue. This is because the increase in quantity sold more than offsets the decrease in price, resulting in an overall increase in revenue. Therefore, the statement in the question is false.

Demand Is Elastic Along the Upper Half of a Liner