If a firm decreases the price of a good and total revenue decreases,then
A)the demand for this good is price elastic.
B)the demand for this good is price inelastic.
C)the cross elasticity is negative.
D)the income elasticity is less than 1.

Question

Quizplus · Accepted Answer

When a firm decreases the price of a good and total revenue decreases, it indicates that the demand for this good is price inelastic. This means that the percentage change in quantity demanded is less than the percentage change in price, leading to a decrease in total revenue.

If a Firm Decreases the Price of a Good and Total