Question

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

Answer 1

Answer: the total revenue decreases

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.