If a 12 percent increase in price leads to a 6 percent decrease in the quantity demanded of the good, as a result of the price change, the total revenue for this product will________ .
A)decrease
B)not change
C)fall by half
D)increase

Question

Quizplus · Accepted Answer

The total revenue for the product will increase because the percentage increase in price is greater than the percentage decrease in quantity demanded, indicating that the price effect dominates the quantity effect, leading to higher total revenue.

If a 12 Percent Increase in Price Leads to a 6