When Demand Is Elastic, an Increase in Price Will Result

question 42

True/False

When demand is elastic, an increase in price will result in an increase in total revenue.

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Definitions:

Equilibrium Price

The cost at which the amount of a product or service that consumers want to buy matches the amount that producers are willing to sell, resulting in a balanced market situation.

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a given price over a specific period.

Supply Curve

A graphical representation of the relationship between the price of a good or service and the quantity of it that producers are willing and able to supply at that price.

Equilibrium Price

The price at which the quantity of goods supplied equals the quantity of goods demanded in the market, leading to a state of balance.