If the seller of good X raises the price of good X, it follows that the total revenue of good X will __________, if demand is __________.
A)rise; unit elastic
B)rise; elastic.
C)fall; unit elastic.
D)fall; inelastic.
E)fall; elastic

Question

Quizplus · Accepted Answer

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

If the Seller of Good X Raises the Price of Good