A price cut will decrease the revenue a firm receives if the demand for its product is

Name: A price cut will decrease the revenue a firm receives if the demand for its product is
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When demand is inelastic, a price cut will decrease the revenue because consumers are not very responsive to price changes, meaning a decrease in price does not lead to a proportionally larger increase in quantity demanded to offset the lower price.

A Price Cut Will Decrease the Revenue a Firm Receives