When demand is elastic,what is the price elasticity,and how will price and total revenue behave
A)greater than 1, and price and total revenue will move in opposite directions
B)less than 1, and price and total revenue will move in the same direction
C)less than 1, and price and total revenue will move in opposite directions
D)greater than 1, and price and total revenue will move in the same direction

Question

Quizplus · Accepted Answer

When demand is elastic, the price elasticity of demand is greater than 1, indicating that a small change in price leads to a proportionally larger change in quantity demanded. As a result, a price increase will cause total revenue to decrease, and a price decrease will cause total revenue to increase. Therefore, price and total revenue will move in opposite directions.

When Demand Is Elastic,what Is the Price Elasticity,and How Will