Which of the following statements is not correct?
A)If the relative change in price is greater than the relative change in the quantity demanded associated with it, demand is inelastic.
B)In the range of prices in which demand is elastic, total revenue will diminish as price decreases.
C)Total revenue will not change if price varies within a range where the elasticity coefficient is unity.
D)Demand tends to be elastic at high prices and inelastic at low prices.

Question

Quizplus · Accepted Answer

Statement B is incorrect because in the range of prices where demand is elastic, total revenue actually increases as price decreases. This is because the percentage increase in quantity demanded is greater than the percentage decrease in price, leading to an overall increase in total revenue.

Which of the Following Statements Is Not Correct