Over a particular price range,if the quantity effect of a price decrease is smaller than the price effect,it implies that ________ for that price range.
A) demand is elastic
B) demand is inelastic
C) the demand curve is horizontal
D) the demand curve is upward sloping

Question

Quizplus · Accepted Answer

If the quantity effect of a price decrease is smaller than the price effect, it means that the percentage change in quantity demanded is less than the percentage change in price, which indicates inelastic demand. In other words, the consumers are not very responsive to the price change, and the total revenue increases when price increases.

Over a Particular Price Range,if the Quantity Effect of a Price