If a rise in price results in a decrease in total revenue, then the price elasticity of demand is
A)negative.
B)zero.
C)greater than zero but less than 1.
D)equal to 1.
E)greater than 1.

Question

Quizplus · Accepted Answer

When a rise in price results in a decrease in total revenue, it means that the demand for the product is elastic, which is reflected in a price elasticity of demand greater than 1. So, the correct answer is E - greater than 1.

If a Rise in Price Results in a Decrease in Total