Which of the following is not characteristic of the demand for a commodity that is elastic?
A)The relative change in quantity demanded is greater than the relative change in price.
B)Buyers are relatively sensitive to price changes.
C)Total revenue increases if price is increased.
D)The elasticity coefficient is greater than one.

Question

Quizplus · Accepted Answer

Elastic demand implies that the relative change in quantity demanded is greater than the relative change in price, meaning consumers are sensitive to price changes and the elasticity coefficient is greater than one. Therefore, if the price increases, total revenue would decrease, not increase, making option C incorrect for elastic demand.

Which of the Following Is Not Characteristic of the Demand