Assume a product has a rather elastic demand curve. If the producer of the good raises the price of the product, that producer's total revenue will always decrease.

Name: Assume a product has a rather elastic demand curve. If the producer of the good raises the price of the product, that producer's total revenue will always decrease.
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Question

Quizplus · Accepted Answer

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

Assume a Product Has a Rather Elastic Demand Curve