If a decrease in price decreases total revenue, then
A) demand is elastic.
B) demand is inelastic.
C) demand is unit elastic.
D) the law of demand is violated.

Name: If a decrease in price decreases total revenue, then A) demand is elastic. B) demand is inelastic. C) demand is unit elastic. D) the law of demand is violated.
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Question

Quizplus · Accepted Answer

When a decrease in price leads to a decrease in total revenue, it indicates that demand is inelastic, meaning consumers are not very responsive to price changes.

If a Decrease in Price Decreases Total Revenue, Then