Q.In the price range where price elasticity of demand for a commodity is greater than 1, what happens to a seller's total revenue if the seller RAISES the price? Explain using the Total Outlay Method.

Apply the Total Outlay Method's rule for the elastic range, but with price RISING instead of falling.

The Total Outlay Method's rule states: when demand is relatively elastic ($E_d>1$), a rise in price causes total outlay (equivalently, the seller's total revenue, since total outlay by buyers is exactly the seller's total sales revenue) to FALL, while a fall in price causes total outlay to RISE.

The reasoning: $E_d>1$ means the PERCENTAGE change in quantity demanded is LARGER than the percentage change in price. So if the seller raises price, quantity demanded falls by a proportionately LARGER amount than the price rise — and since Total Revenue = Price $\times$ Quantity, a large enough fall in quantity more than cancels out the higher per-unit price, so total revenue FALLS overall. …