If the demand for horse race tickets is inelastic,then as the price of horse race tickets increases,quantity demanded of horse race tickets will ________ and total revenue will ________.
A) decrease significantly; decrease
B) decrease slightly; increase
C) increase slightly; decrease
D) increase significantly; increase

Question

Quizplus · Accepted Answer

When demand is inelastic, a price increase leads to a relatively small decrease in quantity demanded, and total revenue increases because the higher price more than offsets the smaller decrease in quantity sold.

If the Demand for Horse Race Tickets Is Inelastic,then as the Price