Suppose that at the price dollars the demand for a product is elastic. If the price is decreased, what will happen to revenue?

Question

Suppose that at the price  dollars the demand for a product is elastic. If the price is decreased, what will happen to revenue?

Quizplus · Accepted Answer

If the demand for a product is elastic, a decrease in price will lead to an increase in quantity demanded by a greater proportion, resulting in an overall increase in revenue, according to the law of demand. Therefore, choice A is the best option.

Suppose That at the Price Dollars the Demand for a Product