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10 December, 00:17

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

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  1. 10 December, 00:18
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    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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