If an airline increases the price of a ticket to New York and its total revenue decreases, the demand curve for airline tickets to New York must be
A) elastic
B) inelastic
C) perfectly elastic
D) perfectly inelastic

Question

Quizplus · Accepted Answer

When demand is elastic, an increase in price leads to a proportionally larger decrease in quantity demanded, resulting in a decrease in total revenue. This is the case described.

If an Airline Increases the Price of a Ticket to New