If demand is elastic,then
A)An increase in price will reduce total revenue.
B)An increase in price will increase total revenue.
C)A decrease in price will reduce total revenue.

Question

Quizplus · Accepted Answer

When demand is elastic, a change in price will result in a proportionately larger change in the quantity demanded. Therefore, an increase in price will result in a larger decrease in quantity demanded, causing total revenue to decrease. On the other hand, a decrease in price will result in a larger increase in quantity demanded, causing total revenue to increase.

If Demand Is Elastic,then