If the demand for a good is _____, a decrease in the price of the good will decrease the total revenue of the firm producing the good.
A)elastic
B)inelastic
C)unit elastic
D)perfectly inelastic
E)perfectly elastic

Question

Quizplus · Accepted Answer

When demand is inelastic, a decrease in price leads to a less than proportionate increase in quantity demanded, resulting in a decrease in total revenue.

If the Demand for a Good Is _____, a Decrease