Given a price elasticity of demand of -0.33, a decrease in price will
A) reduce total revenue.
B) increase total revenue.
C) leave total revenue unchanged.
D) decrease quantity.

Question

Quizplus · Accepted Answer

When the price elasticity of demand is inelastic (between -1 and 0), a decrease in price will lead to a decrease in total revenue because the percentage change in quantity demanded is less than the percentage change in price.

Given a Price Elasticity of Demand of -0