中等ECON-ELAS-005
A firm increases the price of its product. If the demand is price elastic, total revenue will:
A. Increase
B. Decrease✓ 答案
C. Remain unchanged
D. Increase only if the price rise is small
解說
When demand is elastic, %ΔQd > %ΔP. A price rise causes a proportionally larger fall in quantity, so total revenue (P × Q) decreases. Option A would be true for inelastic demand. C occurs only with unit elasticity. D is irrelevant.