Which of the following statements is inconsistent with an elastic demand curve?
A)The price-elasticity coefficient is greater than 1.
B)Total revenue increases when price increases.
C)Buyers are relatively sensitive to price changes.
D)The relative change in quantity exceeds the relative change in price.

Question

Quizplus · Accepted Answer

An elastic demand curve indicates that consumers are highly responsive to price changes, meaning that an increase in price will lead to a larger percentage decrease in quantity demanded. Therefore, total revenue would decrease, not increase, when prices rise, making statement B inconsistent with an elastic demand curve.

Which of the Following Statements Is Inconsistent with an Elastic