If a firm raises the pirce of a product with elastic demand, what wiill happen to the total revenue?

Question 23 options:

It increases

It decreases

A change in an area other than price

A change in price and availability

Question

If a firm raises the pirce of a product with elastic demand, what wiill happen to the total revenue?

Question 23 options:

 

It increases
 
 

It decreases
 
 

A change in an area other than price
 
 

A change in price and availability

anonymous · Answer

Elastic refers to the fact that the market for that product will drastically change with price changes. The demand would decrease in this case therefore reducing revenue. I believe.

anonymous · Answer

|dw:1435313823890:dw|