If the demand for a good is _____, an increase in the price of the good will decrease the total revenue of the firm producing the good.
A)elastic
B)inelastic
C)unit elastic
D)unit inelastic
E)perfectly inelastic

Question

Quizplus · Accepted Answer

When demand for a good is elastic, an increase in price results in a greater decrease in the quantity demanded. As a result, the total revenue of the firm decreases when it raises the price.

If the Demand for a Good Is _____, an Increase