Raising the price on elastic goods generally leads to... an increase in revenue. a decrease in expenses. a decrease in revenue. an increase in expenses.

Raising the price on elastic goods generally leads to a decrease in revenue because consumers are sensitive to price changes. When the price goes up, the quantity demanded typically falls significantly as people seek substitutes or cut back on their purchases. So, while you might hope for a financial boost, that increase can turn into a budget bulge that deflates your revenue instead! In the real world, think about how higher prices for popular snacks can backfire. If a beloved chocolate bar raises its price, many people might grab a different treat or skip it altogether. Companies have to walk a fine line when pricing elastic goods—they want to cover costs but also keep customers coming back for more delightful nibbles without the hefty price tag!