If a firm raised its price and discovered that its total revenue fell, then the demand for its product is
A)perfectly inelastic.
B)relatively inelastic.
C)perfectly elastic.
D)relatively elastic.

Question

Quizplus · Accepted Answer

If the total revenue falls after a price increase, it means that the quantity demanded decreased significantly. This indicates that the demand for the product is relatively elastic, meaning that a small change in price leads to a substantial change in the quantity demanded.

If a Firm Raised Its Price and Discovered That Its