Question

If demand is elastic, a business could raise total revenues by increasing the price of a good or service.

A. TRUE
B. FALSE

Answer 1

When demand is elastic, a business can increase total revenues by raising the price of a good or service.

Step-by-step explanation:

If demand is elastic, a business could raise total revenues by increasing the price of a good or service. When demand is elastic, it means that a small change in price leads to a larger change in quantity demanded. By increasing the price, the business will experience a relatively smaller decrease in quantity demanded, resulting in higher total revenue.