If the price of a product increases and total revenue decreases, what does this indicate about the demand elasticity of that product?

When the price of a product goes up and the total revenue goes down, it means that the demand for that product is elastic. This means that customers are very sensitive to price changes; when the price rises, many people choose not to buy the product or look for cheaper alternatives. For example, if a popular snack increases in price but customers stop buying it and sales drop significantly, it shows that people can easily find substitutes or decide to skip the snack altogether. In this case, the decrease in revenue indicates that the percentage drop in quantity sold is greater than the percentage increase in price. Therefore, the product has elastic demand, meaning consumers react strongly to price changes.