If demand is price inelastic,a decrease in price
A)raises total revenue to the seller
B)raises total expenditure on the good,but not total revenue to the seller
C)reduces total revenue to the seller
D)leaves total revenue to the seller unchanged
E)leaves total expenditure on the good unchanged

Question

Quizplus · Accepted Answer

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

If Demand Is Price Inelastic,a Decrease in Price