If demand is elastic,a price reduction will lead to an increase in total revenue.

Name: If demand is elastic,a price reduction will lead to an increase in total revenue.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When demand is elastic, a decrease in price will result in a proportionally larger increase in quantity demanded, leading to an overall increase in total revenue. This is because the increase in sales due to the lower price outweighs the decrease in revenue per unit sold.

If Demand Is Elastic,a Price Reduction Will Lead to an Increase