Which of the following occurs when price is inelastic?
A)Revenue is unaffected by price changes.
B)Revenues decrease when price increases.
C)Price and revenue change in the same direction.
D)The demand curve is more horizontal.
E)Quantity demanded increases when price increases.

Question

Quizplus · Accepted Answer

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

Which of the Following Occurs When Price Is Inelastic