If the price of good X rises and the demand for good X is inelastic, then the percentage fall in quantity demanded is __________ the percentage rise in price, and total revenue __________.
A)greater than; rises
B)less than; falls
C)equal to; remains constant
D)greater than; falls
E)less than; rises

Question

Quizplus · Accepted Answer

When demand is inelastic, the percentage change in quantity demanded is less than the percentage change in price. Therefore, if the price rises, total revenue increases because the loss in revenue from selling fewer units is more than offset by the higher price per unit.

If the Price of Good X Rises and the Demand