Price and total revenue move in the opposite direction when demand is inelastic.

Question

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When demand is inelastic, price and total revenue move in the same direction. This is because when price increases, quantity demanded does not decrease significantly, so the increase in price leads to an increase in total revenue. On the other hand, when demand is elastic, price and total revenue move in opposite directions because an increase in price leads to a significant decrease in quantity demanded, resulting in a decrease in total revenue.

Price and Total Revenue Move in the Opposite Direction When