When demand is inelastic,what will a decrease in price cause
A)an increase in total revenue
B)a decrease in total revenue
C)no change in total revenue
D)an uncertain change in total revenue

Question

Quizplus · Accepted Answer

When demand is inelastic, a decrease in price will result in a proportionally smaller increase in quantity demanded, leading to a decrease in total revenue. This is because the decrease in price isn't enough to offset the decrease in revenue caused by the decrease in quantity demanded. Conversely, an increase in price would result in an increase in total revenue.

When Demand Is Inelastic,what Will a Decrease in Price Cause