If the price of a commodity with elastic demand increases, the revenue accruing to the producer will
double
increase
be constant
decrease
Explanation
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demand. When demand is elastic, an increase in price will result in an increase in total revenue. When demand is elastic, a decrease in price will result in an increase in total revenue. When demand is inelastic, an increase in price will result in an increase in total revenue.the right answer is B option
the answer D is correct because if the price of an elastic demand increases it will make the consumer to shift to a closer substitute with lesser price thereby leading to a decrease in revenue of the producer.
Or at the other hand,If demand is elastic, a price decrease will decrease total revenue, while an increase in price will increase total revenue. If demand is unit elastic, total revenue remains constant when prices rise or fall. measures the responsiveness of sellers to changes in the price of a product.
