If the demand for a good is elastic, then total revenue
A) increases as price increases.
B) remains constant as quantity demanded increases.
C) increases as price decreases.
D) decreases as quantity demanded increases.
E) decreases as price decreases.

Question

Quizplus · Accepted Answer

When demand is elastic, a decrease in price leads to a proportionally larger increase in quantity demanded, resulting in an increase in total revenue.

If the Demand for a Good Is Elastic, Then Total