If a good is price inelastic,a decrease in price will:
A)decrease total revenue.
B)increase total revenue.
C)not affect income.
D)none of the above.

Question

Quizplus · Accepted Answer

When a good is price inelastic, it means that the quantity demanded does not significantly change with a change in price. Therefore, a decrease in price will lead to a decrease in total revenue because the increase in quantity sold is not enough to offset the loss from the lower price.

If a Good Is Price Inelastic,a Decrease in Price Will