If,when the price falls,total revenue increases,demand is
A) elastic.
B) inelastic.
C) unit elastic.
D) perfectly inelastic.
E) None of the above answers is correct because total revenue always decreases when the price of the good falls.

Question

Quizplus · Accepted Answer

When the price falls and total revenue increases, it indicates that the demand is responsive to price changes, resulting in a relatively large change in the quantity demanded compared to the change in price. This is the characteristic of elastic demand, where a decrease in price leads to a more than proportionate increase in quantity demanded and an increase in total revenue.

If,when the Price Falls,total Revenue Increases,demand Is