If a $1 increase in price leads to a $1 decrease in total revenue, then demand must be elastic.

Name: If a $1 increase in price leads to a $1 decrease in total revenue, then demand must be elastic.
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Quizplus · Accepted Answer

If a $1 increase in price leads to a $1 decrease in total revenue, then the price elasticity of demand is -1. This means that demand is elastic, as a small change in price leads to a relatively large change in quantity demanded.

If a $1 Increase in Price Leads to a $1