Total revenue will decrease if price
A)rises and demand is inelastic.
B)falls and demand is unit elastic.
C)rises and demand is unit elastic.
D)rises and demand is elastic.
E)falls and demand is elastic.

Question

Quizplus · Accepted Answer

If price rises and demand is elastic, consumers will respond to the price increase by reducing their quantity demanded by a greater proportion than the price increase. As a result, total revenue will decrease.

Total Revenue Will Decrease If Price