If demand is _____, a higher price yields _____ total revenue.
A)inelastic; lower
B)inelastic; no change in
C)elastic; higher
D)elastic; lower

Question

Quizplus · Accepted Answer

When demand is elastic, a higher price will lead to a decrease in the quantity demanded, resulting in lower total revenue. This is because the decrease in quantity demanded outweighs the increase in price, making the total revenue decrease.

If Demand Is _____, a Higher Price Yields _____ Total

If Demand Is _, a Higher Price Yields _ Total