Over the inelastic range of a demand curve, there is
A) a positive relationship between a given percentage change in price and a change in total revenues.
B) a negative relationship between a given percentage change in price and a change in total revenues.
C) an increase in total revenues regardless of an increase or decrease in price.
D) no relationship between changes in price and changes in total revenues.

Question

Quizplus · Accepted Answer

In the inelastic range, a price increase leads to higher total revenue because the percentage drop in quantity demanded is smaller than the percentage increase in price.

Over the Inelastic Range of a Demand Curve, There Is