Assume the demand for a good is elastic. If the price of the good decreases, then total revenue
A) decreases.
B) remains constant.
C) increases.
D) is negative.

Name: Assume the demand for a good is elastic. If the price of the good decreases, then total revenue A) decreases. B) remains constant. C) increases. D) is negative.
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Question

Quizplus · Accepted Answer

When demand is elastic, a decrease in price leads to a proportionally larger increase in quantity demanded, which increases total revenue.

Assume the Demand for a Good Is Elastic