Final answer:
When demand for a product like Quilted Northern toilet paper is elastic, a decrease in price results in a proportionally larger increase in quantity sold, potentially raising total revenue for the company.
Step-by-step explanation:
If the demand for Quilted Northern toilet paper is elastic, this means that consumers are responsive to changes in price.
Therefore, if the price were to decrease, there would be a proportionally larger increase in the quantity sold. This is because when the demand is elastic, a percentage drop in price leads to a larger percentage increase in quantity demanded.
As a result, the company could raise its total revenue by reducing the price of Quilted Northern toilet paper.
On the other hand, if the demand is inelastic, an increase in price will result in a smaller decrease in the quantity sold, also leading to an increase in total revenue. If the demand has a unitary elasticity, a moderate change in price will be offset by an equal change in quantity, resulting in the same revenue.