If the
The elasticity of demand.
Explanation of Solution
When the increase in the price leads to a decline in the revenue, it implies that the demand for good or service is elastic. This is due to the reason that percentage decrease in the quantity consumed due to increase in price is greater than the percentage increase in the price.
Elasticity of demand: Elasticity of demand is the responsiveness of a quantity demanded to a change in the price and more responsive implies more elastic.
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