If the demand for apples is elastic,then an increase in the price of apples will
A) increase total revenue of apple sellers.
B) decrease total revenue of apple sellers.
C) not change total revenue of apple sellers.
D) There is not enough information to answer this question.

Question

Quizplus · Accepted Answer

If the demand for apples is elastic, an increase in price would lead to a relatively larger decrease in quantity demanded, resulting in a decrease in total revenue for apple sellers. This is because the increase in revenue due to the higher price per unit is more than offset by the decrease in revenue due to lower total sales.

If the Demand for Apples Is Elastic,then an Increase in the Price