If a firm generates $13,000 in revenue at a price of $5 per unit and $11,000 at $6 per unit, what can be inferred?

The conclusion that the demand for the good is elastic is based on the responsiveness of quantity demanded to changes in price, as indicated by the changes in revenue. In this scenario, when the price of the product increased from $5 to $6, the revenue generated decreased from $13,000 to $11,000.

Typically, if a firm raises its price and revenue simultaneously increases, it indicates that the demand for the good is inelastic. Conversely, if a price increase leads to a decrease in total revenue, it suggests that consumers are quite sensitive to price changes, which characterizes elastic demand.

In this case, since the price increase from $5 to $6 resulted in a decrease in total revenue, it indicates that the percentage change in quantity demanded was greater than the percentage change in price. This responsiveness indicates an elastic demand, demonstrating that consumers are willing to buy significantly less of the good as the price rises.

Therefore, it is correct to conclude that the demand for the good is elastic, as the change in revenue reflects a significant sensitivity of consumers to the price increase.