Concept:For a good with elastic demand, total producer revenue depends on the percentage change in quantity demanded being greater than the percentage change in price.
Explanation:When demand is elastic, the price elasticity of demand is greater than
1.
This means that consumers respond strongly to a price rise.
If the producer increases the price, the quantity demanded falls by a larger proportion than the price increase.
As a result, the loss in sales is greater than the gain from the higher price.
Total revenue, which is price multiplied by quantity sold, will therefore fall.
The producer earns less revenue after the price increase.
Answer:The revenue accruing to the producer will decrease.
So the correct option is
D.