If demand is inelastic, then price and total revenue are directly related.

Name: If demand is inelastic, then price and total revenue are directly related.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When demand is inelastic, a change in price results in a proportionally smaller change in quantity demanded. Therefore, an increase in price will result in an increase in total revenue, and a decrease in price will result in a decrease in total revenue.

If Demand Is Inelastic, Then Price and Total Revenue Are