If the supply schedule for tin is relatively inelastic to price changes,a decrease in the demand schedule for tin will cause a:
A) Decrease in price and an increase in sales revenue
B) Decrease in price and a decrease in sales revenue
C) Increase in price and an increase in sales revenue
D) Increase in price and a decrease in sales revenue

Question

Quizplus · Accepted Answer

When demand decreases and supply is inelastic, the price will fall, leading to a decrease in sales revenue because the quantity sold does not increase significantly.

If the Supply Schedule for Tin Is Relatively Inelastic to Price