When a firm operates in the elastic portion of the demand curve, a decrease in price will lead to a large change in total revenue because the price elasticity of demand is considered to be ___.

When a firm operates in the elastic portion of the demand curve, it means that consumers are very sensitive to price changes. If the firm lowers its price, many more customers will likely buy the product, leading to a significant increase in the quantity sold. Since the increase in quantity is greater than the decrease in price, total revenue will rise. For example, if a coffee shop reduces the price of a cup of coffee from $5 to $4, and as a result, sells 50 more cups than before, the total revenue increases even though the price per cup is lower. This shows that in the elastic range, a price decrease can lead to a large increase in total revenue.