When demand is price inelastic,
A) price and total revenue move in the same direction.
B) price and total revenue move in the opposite direction.
C) total revenue increases whether price goes up or down.
D) total revenue decreases whether price goes up or down.

Question

Quizplus · Accepted Answer

When demand is price inelastic, an increase in price leads to an increase in total revenue, and a decrease in price leads to a decrease in total revenue, meaning they move in the same direction.

When Demand Is Price Inelastic