A change in the price of an elastic good will cause total revenue from that good to decrease. See the correct answer for a full explanation.
If a good is elastic, that means that a small increase in the price of the good will lead to a larger decrease in the demand for that good. Therefore, for elastic goods an increase in the price will lead to a decrease in the total revenue from that good. This is because the (for example) 5% increase in price is more than offset by the (for example) 10% decrease in the demand for the good.
A change in the price of an elastic good will cause total revenue from that good to decrease. See the correct answer for a full explanation.
A change in the price of an elastic good will cause total revenue from that good to decrease. See the correct answer for a full explanation.
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