multiple choice question\nif product demand is relatively elastic, what will be the effect on the total…
multiple choice question\nif product demand is relatively elastic, what will be the effect on the total revenue if the price is increased?\nit stays the same.\nit cannot be determined.\nit decreases.\nit increases.
Answer
Brief Explanations:
When demand is elastic, consumers are highly responsive to price changes. A price increase leads to a proportionately larger decrease in quantity demanded. Since total revenue is price times quantity (TR = P×Q), the decrease in quantity demanded outweighs the increase in price, causing total revenue to fall.
Answer:
It decreases.