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30 April, 22:27

When demand is elastic, a fall in price causes total revenue to rise because the demand curve shifts. when price falls, quantity sold increases so total revenue automatically rises. the increase in quantity sold is large enough to offset the lower price. the percentage increase in quantity demanded is less than the percentage fall in price. true/false

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  1. 1 May, 01:38
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    Answer: The correct answer is "The increase in quantity sold is large enough to offset the lower price.".

    Explanation: When demand is elastic, the increase in quantity sold is large enough to offset the lower price.

    Elastic demand is that market demand that varies according to what happens in the price of a product, resulting in a proportional change in the quantity demanded.

    That is, if the price of the product falls, the number of the demand goes up, for this reason it is called elastic demand.
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