Total revenue falls as the price of a good is raised, if the demand for the good is
A)elastic.
B)inelastic.
C)unitary elastic.
D)perfectly elastic.

Name: Total revenue falls as the price of a good is raised, if the demand for the good is A)elastic. B)inelastic. C)unitary elastic. D)perfectly elastic.
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Question

Quizplus · Accepted Answer

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

Total Revenue Falls as the Price of a Good Is