In the price range where demand is elastic,an increase in price will result in a gain in total revenue.

Question

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In the price range where demand is elastic, an increase in price will result in a decrease in quantity demanded that is proportionately greater than the increase in price. This leads to a decrease in total revenue, as the quantity sold decreases more than the increase in price can make up for.

In the Price Range Where Demand Is Elastic,an Increase in Price