If demand is perfectly inelastic,a decrease in price results in a(n)
A)decrease in seller's total revenue
B)increase in total seller's expenditure
C)increase in expenditure on the good,but a decrease in revenue to the seller
D)unfavorable shift in tastes and preferences
E)increase in total revenue to the seller

Question

Quizplus · Accepted Answer

When demand is perfectly inelastic, quantity demanded does not change with price changes. Therefore, a decrease in price leads to a decrease in total revenue for the seller, as the same quantity is sold at a lower price.

If Demand Is Perfectly Inelastic,a Decrease in Price Results in A(n)