If total revenue increases when price falls, demand is inelastic.

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If total revenue increases when price falls, it is an indication that demand is elastic, as consumers are more responsive to changes in price and are willing to purchase more at a lower price. Inelastic demand refers to a situation where changes in price do not significantly affect the quantity demanded by consumers, and therefore, a decrease in price does not lead to an increase in total revenue.

If Total Revenue Increases When Price Falls, Demand Is Inelastic