If the elasticity number (E)is less than 1,a price increase will cause total revenue to fall.

Name: If the elasticity number (E)is less than 1,a price increase will cause total revenue to fall.
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Quizplus · Accepted Answer

If the elasticity number (E) is less than 1, the demand is considered inelastic, meaning that a price increase will actually cause total revenue to increase, not fall, because the percentage decrease in quantity demanded is less than the percentage increase in price.

If the Elasticity Number (E)is Less Than 1,a Price Increase