If a change in price causes total revenue to change in the same direction,we can conclude that the demand is:
A)price inelastic.
B)price elastic.
C)price unit-elastic.
D)zero elastic.

Question

Quizplus · Accepted Answer

When demand is price inelastic, a change in price leads to a smaller percentage change in quantity demanded, causing total revenue to move in the same direction as the price change.

If a Change in Price Causes Total Revenue to Change