A price decrease will cause total revenue to fall if
A)Demand is elastic.
B)Demand is inelastic.
C)Demand is unitary elastic.

Name: A price decrease will cause total revenue to fall if A)Demand is elastic. B)Demand is inelastic. C)Demand is unitary elastic.
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Question

Quizplus · Accepted Answer

When demand is inelastic, a price decrease leads to a smaller percentage increase in quantity demanded, causing total revenue to fall.

A Price Decrease Will Cause Total Revenue to Fall If