The demand for hamburger buns is known to be elastic.This means that if the price of the product increases,
A)total revenue will rise.
B)total revenue will stay the same.
C)the quantity demanded will rise.
D)total revenue will fall.

Question

Quizplus · Accepted Answer

When the demand for a product is elastic, an increase in price leads to a decrease in quantity demanded. This means that if the price of hamburger buns increases, the total revenue earned from the sale of hamburger buns will decrease. Thus, the correct answer is D - total revenue will fall.

The Demand for Hamburger Buns Is Known to Be Elastic