An increase in price will cause a firm's total revenue to increase if demand is price elastic.

Name: An increase in price will cause a firm's total revenue to increase if demand is price elastic.
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Question

Quizplus · Accepted Answer

If demand is price elastic, then an increase in price will cause a decrease in the quantity demanded by consumers. This means that the firm will sell less overall, leading to a decrease in total revenue rather than an increase.

An Increase in Price Will Cause a Firm's Total Revenue