Price and total revenue move in inverse directions when demand is
A) price elastic.
B) price inelastic.
C) unit price elastic.
D) perfectly price inelastic.

Question

Quizplus · Accepted Answer

When demand is price elastic, a decrease in price leads to a larger percentage increase in quantity demanded, which increases total revenue, and vice versa. This indicates an inverse relationship between price and total revenue.

Price and Total Revenue Move in Inverse Directions When Demand