Price and total revenue move in the same direction when demand is elastic.

Question

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When demand is elastic, a change in price causes a relatively large change in quantity demanded. As a result, when the price increases, the quantity demanded decreases by a proportionally larger amount, leading to a decrease in total revenue. Similarly, when the price decreases, the quantity demanded increases by a proportionally larger amount, leading to an increase in total revenue. Therefore, price and total revenue move in opposite directions when demand is elastic.

Price and Total Revenue Move in the Same Direction When