Question

if TR increases due to a fall in the price of the product then price elasticity is​

Answer 1

Answer:

In economics, the total revenue test is a means for determining whether demand is elastic or inelastic. If an increase in price causes an increase in total revenue, then demand can be said to be inelastic, since the increase in price does not have a large impact on quantity demanded.

Answer 2

When the Total Revenue increases due to the fall in the price of the product, then the price elasticity of demand is greater than or equal to 1.

• When the revenue of a business increases due to a fall in the price, then the price elasticity of the product is greater than or equal to one because it affected the demand of the product.
• When the demand for a product is elastic, then the value will always be greater than 1.