If a price decrease results in an increase in total revenue, then demand is
A)inelastic.
B)unit elastic.
C)perfectly inelastic.
D)equal to supply.
E)elastic.

Name: If a price decrease results in an increase in total revenue, then demand is A)inelastic. B)unit elastic. C)perfectly inelastic. D)equal to supply. E)elastic.
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Question

Quizplus · Accepted Answer

When a price decrease leads to an increase in total revenue, it indicates that the demand is elastic, meaning consumers are responsive to price changes.

If a Price Decrease Results in an Increase in Total