If total revenue falls as price rises, then the demand for the product
A) is elastic.
B) is unit elastic.
C) is inelastic.
D) has a slope greater than 1.
E) is upward sloping.

Question

Quizplus · Accepted Answer

When total revenue falls as price rises, it indicates that a small increase in price leads to a relatively larger decrease in quantity demanded. This means that demand is responsive to changes in price and therefore, the demand for the product is elastic.

If Total Revenue Falls as Price Rises, Then the Demand