When a demand curve is INELASTIC:
A) if price goes down, then total revenue stays the same.
B) if price goes up, then total revenue stays the same.
C) if price goes down, then total revenue goes down.
D) if price goes up, then total revenue goes down.

Question

Quizplus · Accepted Answer

When a demand curve is inelastic, a decrease in price leads to a decrease in total revenue because the percentage change in quantity demanded is less than the percentage change in price.

When a Demand Curve Is INELASTIC