A decrease in price will result in an increase in total revenue if.
The percentage change in quantity demanded in less than the percentage change in price
The percentage change in quantity demanded is greater than the percentage change in price
Demand is inelastic
The consumer is operating along a linear demand curve at a point at which the price is very low and the quantity demanded is very high

Question

A decrease in price will result in an increase in total revenue if.
The percentage change in quantity demanded in less than the percentage change in price
The percentage change in quantity demanded is greater than the percentage change in price
Demand is inelastic
The consumer is operating along a linear demand curve at a point at which the price is very low and the quantity demanded is very high

Toppr Admin · Accepted Answer

A decrease in price result in an increase in total revenue-total -expenditure- indicates inverse relation so demand will be elastic-E-gt-1- as per total outlay method and also E-gt-1 will be -happened under - method when -x394-Q-gt-x394-P-

A decrease in price result in an increase in total revenue(total expenditure), indicates inverse relation so demand will be elastic(E>1) as per total outlay method and also E>1 will be happened under % method when %ΔQ>%ΔP.

A decrease in price result in an increase in total revenue(total expenditure), indicates inverse relation so demand will be elastic $(E > 1)$ as per total outlay method and also $E > 1$ will be happened under $%$ method when $% Δ Q > % Δ P$ .