When the total revenue and price both move in the same direction (are directly related),demand is
A) elastic.
B) inelastic.
C) unitary elastic.
D) horizontal.
E) vertical.

Question

Quizplus · Accepted Answer

When the total revenue and price move in the same direction, it is an indication that the demand is inelastic. This means that changes in price have a relatively small effect on the quantity demanded, causing total revenue to move in the same direction as the price.

When the Total Revenue and Price Both Move in the Same