the demand for umbrellas is price inelastic,
A)changes in price do not affect the number of umbrellas demanded.
B)if more umbrellas are sold as the result of a price decrease,total expenditures by consumers on umbrellas will decrease.
C)the percentage change in price is less than the percentage change in quantity demanded.
D)the percentage change in quantity demanded is greater than the percentage change in price.
E)none of the above

Question

Quizplus · Accepted Answer

When demand is price inelastic, a decrease in price leads to a smaller percentage increase in quantity demanded, resulting in lower total revenue.

The Demand for Umbrellas Is Price Inelastic