If a good is price elastic,a decrease in price will:
A)decrease total revenue.
B)increase total revenue.
C)not affect revenue.
D)none of the above.

Question

Quizplus · Accepted Answer

If a good is price elastic, a decrease in price will lead to a relatively larger increase in the quantity demanded. This increase in quantity demanded will compensate for the decrease in price, resulting in an overall increase in total revenue.

If a Good Is Price Elastic,a Decrease in Price Will