If the demand for a good is inelastic and the price of the good decreases, then
A)total revenue increases.
B)total revenue decreases.
C)total revenue is not affected.
D)the direction of the change in total revenue cannot be determined from the information given.

Question

Quizplus · Accepted Answer

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

If the Demand for a Good Is Inelastic and the Price