If the price of good X rises and the demand for good X is elastic, then the percentage __________ in quantity demanded is __________ the percentage rise in price, and total revenue __________.
A)fall; greater than; rises
B)fall; less than; falls
C)fall; equal to; remains constant
D)rise; greater than; falls
E)fall; greater than; falls

Question

Quizplus · Accepted Answer

When demand is elastic, a rise in price leads to a proportionally larger percentage fall in quantity demanded, reducing total revenue.

If the Price of Good X Rises and the Demand