When total revenue and price are directly related, demand is
A) unit-elastic.
B) inelastic.
C) elastic.
D) not related.

Question

Quizplus · Accepted Answer

When total revenue and price are directly related, it means that an increase in price leads to an increase in total revenue and a decrease in price leads to a decrease in total revenue. This is the case with inelastic demand because the quantity demanded does not change significantly with a change in price. Therefore, the best choice is B.

When Total Revenue and Price Are Directly Related, Demand Is