If total revenue falls as a result of a decrease in the price of a given good, it follows that demand is
A)perfectly elastic.
B)inelastic.
C)unit elastic.
D)elastic.

Name: If total revenue falls as a result of a decrease in the price of a given good, it follows that demand is A)perfectly elastic. B)inelastic. C)unit elastic. D)elastic.
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Question

Quizplus · Accepted Answer

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

If Total Revenue Falls as a Result of a Decrease