If demand is a straight line as price falls the total revenu

If demand is a straight line, as price falls the total revenue first increases for high prices and then falls as price gets smaller. True False

Solution

True- because straight line demand curves have a different elasticity at each point on it .Therefore price reduction leads to increase in TR upto the mid point of demand curve where elasticity is 1.and after that TR starts falling

when TR increases ED>1 , when TR decreases ED<1.