If demand is price elastic, a decrease in price causes an increase in quantity, but anything can happen to revenue.
Price elasticity is a term used in economics to describe how responsive a market is to changes in a specific product's price. Price elasticity, however, has two functions. The price elasticity of supply monitors producer behavior, whereas the pricing elasticity of demand reflects consumer behavior as a function of price change.
The change in consumption of an item as a result of a price change is measured by the price elasticity of demand. By dividing the percent change in consumption by the percent change in price, it is computed. An inelastic score is one between 0 and 1, meaning that changes in price have little effect on demand.
To know more about Price elasticity visit the link:
https://brainly.com/question/14997249
#SPJ4
