A price cut will decrease the revenue a firm receives if the demand for its product is
A)elastic.
B)inelastic.
C)of unit elasticity.
D)straight elastic.

Name: A price cut will decrease the revenue a firm receives if the demand for its product is A)elastic. B)inelastic. C)of unit elasticity. D)straight elastic.
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Question

Quizplus · Accepted Answer

When demand is inelastic, a price cut leads to a smaller percentage increase in quantity demanded, resulting in a decrease in total revenue.

A Price Cut Will Decrease the Revenue a Firm Receives