If demand is price inelastic and the price is lowered,which of the following occurs?
A) The quantity sold decreases.
B) The total expenditure increases and the total revenue decreases.
C) The total revenue of the firms selling the product is unchanged.
D) The total revenue of the firms selling the product decreases.
E) The total expenditure decreases and the total revenue increases.

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 firms selling the product.

If Demand Is Price Inelastic and the Price Is Lowered,which