Question

If the demand for a good is estimated to be _____, then firms producing the good will experience an increase in total revenue if prices fall.

Answer 1

Answer: elastic

Explanation:

Elastic demand is a demand that occurs when the quantity demanded for a product or service results in a greater percentage change when there is a change in price.

For example, when there's a fall in price, this will lead to large change in quantity demanded for the good. Since there's an increase in the quantity demanded, it will lead to increase in revenue.