If the demand for a good is relatively price elastic and its price falls the revenue will:
A) Fall
B) Remain constant
C) Rise
D) None of the above

Name: If the demand for a good is relatively price elastic and its price falls the revenue will: A) Fall B) Remain constant C) Rise D) None of the above
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Question

Quizplus · Accepted Answer

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

If the Demand for a Good Is Relatively Price Elastic