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nadezda [96]
3 years ago
5

Given that total revenue = price x quantity, what will happen to total revenue if price increases when demand is elastic?

Mathematics
1 answer:
Nitella [24]3 years ago
6 0

Answer: the total revenue decreases

Step-by-step explanation:

In an elastic demand, an increase in price of of a product will lead to a large decrease in the quantity demanded resulting in a decrease in the total revenue acquired.

In the case above, given that the demand is elastic an increase in the price will lead to a decrease in the total revenue.

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