If at current prices, the demand for a good is price-elastic, then for movements along the demand curve,
A)increasing the price will increase revenue.
B)decreasing the price will decrease revenue.
C)increasing the quantity sold will increase revenue.
D)increasing the quantity sold will decrease revenue.
E)More than one of the above statements are true.

Question

Quizplus · Accepted Answer

When demand is price-elastic, a decrease in price leads to a proportionally larger increase in quantity demanded, thus increasing total revenue.

If at Current Prices, the Demand for a Good Is