Holding all other forces constant,if decreasing the price of a good leads to a decrease in total revenue,then the demand for the good must be
A) unit elastic.
B) inelastic.
C) elastic.
D) None of the above is correct because a price increase always leads to an increase in total revenue.

Question

Quizplus · Accepted Answer

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

Holding All Other Forces Constant,if Decreasing the Price of a Good