When demand is ________, increases in price result in increases in total revenues, while decreases in price result in decreases in total revenue.
A) elastic
B) inelastic
C) flexible
D) supply-driven
E) cross-elastic

Question

Quizplus · Accepted Answer

When demand is inelastic, changes in price result in proportionately smaller changes in quantity demanded. This means that increases in price will result in increases in total revenue, while decreases in price will result in decreases in total revenue.

When Demand Is ________, Increases in Price Result in Increases