If along a given segment of a demand curve price falls and total revenue ____________, then demand is price inelastic along that segment.
A) increases
B) decreases
C) stays the same
D) decreases at first and then increases

Question

Quizplus · Accepted Answer

When demand is price inelastic, a decrease in price leads to a smaller percentage increase in quantity demanded, resulting in a decrease in total revenue.

If Along a Given Segment of a Demand Curve Price