If demand is __________, price and total revenue are __________ related; if demand is __________, price and total revenue are directly related.
A)elastic; inversely; inelastic
B)inelastic; inversely; elastic
C)unit elastic; not; elastic
D)inelastic; inversely; unit elastic
E)none of the above

Question

Quizplus · Accepted Answer

When demand is elastic, a price increase leads to a proportionally larger decrease in quantity demanded, reducing total revenue, indicating an inverse relationship. Conversely, when demand is inelastic, a price increase causes a smaller proportionate decrease in quantity demanded, increasing total revenue, indicating a direct relationship.

If Demand Is __________, Price and Total Revenue Are __________

If Demand Is , Price and Total Revenue Are