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    5. If the price elasticity of demand for apples is 3, then what will be the impact on total revenue if

    Question

    If the price elasticity of demand for apples

    is 3, then what will be the impact on total revenue if price increases?
    A Total revenue will increase Correct Answer Incorrect Answer
    B Total revenue will not change Correct Answer Incorrect Answer
    C Total revenue will decrease Correct Answer Incorrect Answer
    D Total revenue triples Correct Answer Incorrect Answer
    E Total revenue will fall to zero Correct Answer Incorrect Answer

    Solution

    TR decreases for goods with elastic price elasticity.

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