multiple choice question when the demand for a product is relatively price elastic and price is ______…

multiple choice question when the demand for a product is relatively price elastic and price is ______, total revenue will \n\n increased; increase \n\n increased; decrease \n\n decreased; decrease \n\n increased; stay constant

multiple choice question when the demand for a product is relatively price elastic and price is ______, total revenue will \n\n increased; increase \n\n increased; decrease \n\n decreased; decrease \n\n increased; stay constant

Answer

Brief Explanations:

When demand is relatively price - elastic, consumers are highly responsive to price changes. If the price is increased, the percentage decrease in quantity demanded is greater than the percentage increase in price, leading to a decrease in total revenue. If the price is decreased, the percentage increase in quantity demanded is greater than the percentage decrease in price, leading to an increase in total revenue. So when price is increased, total revenue will decrease.

Answer:

B. increased; decrease