If demand is inelastic, a reduction in price
A) decreases the quantity demanded.
B) decreases total revenue.
C) increases total revenue.
D) leaves total revenue unaffected.

Name: If demand is inelastic, a reduction in price A) decreases the quantity demanded. B) decreases total revenue. C) increases total revenue. D) leaves total revenue unaffected.
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Question

Quizplus · Accepted Answer

When demand is inelastic, a reduction in price leads to a proportionally smaller increase in quantity demanded, which decreases total revenue.

If Demand Is Inelastic, a Reduction in Price