If a decrease in the price of a good decreases the total revenue,the demand for the good is
A)price elastic
B)price inelastic
C)income elastic
D)income inelastic

Question

If a decrease in the price of a good decreases the total revenue,the demand for the good is​
A)​price elastic
B)price inelastic
C)income elastic
D)​income inelastic

Quizplus · Accepted Answer

When the demand for a good is price inelastic, a decrease in price leads to a smaller percentage increase in quantity demanded, resulting in a decrease in total revenue. This is because consumers are not very responsive to price changes for inelastic goods.

If a Decrease in the Price of a Good Decreases