If demand is inelastic and the price falls,the total revenue
A) rises.
B) falls.
C) remains constant.
D) might rise, fall, or remain constant.
E) becomes negative.

Question

Quizplus · Accepted Answer

When demand is inelastic, a decrease in price leads to a decrease in total revenue because the percentage change in quantity demanded is less than the percentage change in price.

If Demand Is Inelastic and the Price Falls,the Total Revenue