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Gwar [14]
4 years ago
7

If the demand for apples is elastic, then an increase in the price of apples will a. increase total revenue of apple sellers. b.

decrease total revenue of apple sellers. c. not change total revenue of apple sellers. d. There is not enough information to answer this question.
Social Studies
1 answer:
snow_tiger [21]4 years ago
7 0

Answer:

b. decrease total revenue of apple sellers.

Explanation:

when a demand is elastic, it means that fluctuation in prices and other factors have effect on the demand for that product. The implication is that at a higher price, demand will reduce and at a lower price demand will increase. In contrast to inelastic demand whereby an increase in price does not affect demand.

Thus, since apple is  an elastic good, an increase in its price will result is reduction in demand leading to decrease in revenne of apple sellers.

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