If the price elasticity of demand for pineapples is greater than 1, an increase in pineapple prices will
A) raise total revenue.
B) lower total revenue.
C) not affect total revenue.
D) either raise or lower total revenue, but it is impossible to determine which.

Question

Quizplus · Accepted Answer

An increase in price would cause a proportionately larger decrease in quantity demanded, leading to a decrease in total revenue.

If the Price Elasticity of Demand for Pineapples Is Greater