When the price of a product decreases and total revenue increases, the demand for that product is considered to be __________.

When the price of a product decreases and the total revenue increases, the demand for that product is considered to be elastic. This means that consumers are very responsive to changes in price. For example, if the price of a popular snack goes down, more people may decide to buy it, leading to a larger increase in sales than the drop in price. Because of this increased quantity sold, the overall revenue from those sales rises. In simple terms, elastic demand shows that lowering prices can lead to more sales and higher total income for the seller.