Which of the following is correct?
A)If demand is elastic, an increase in price will increase total revenue.
B)If demand is elastic, a decrease in price will decrease total revenue.
C)If demand is elastic, a decrease in price will increase total revenue.
D)If demand is inelastic, an increase in price will decrease total revenue.

Question

Quizplus · Accepted Answer

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

Which of the Following Is Correct