Asked by Carson England on Sep 24, 2024
Verified
If a decrease in the price of a good decreases the total revenue,the demand for the good is
A) price elastic
B) price inelastic
C) income elastic
D) income inelastic
Price Elastic
Refers to the sensitivity of the demand for a product in response to changes in its price.
Total Revenue
The total amount of money received by a company from its sales of goods or services.
Demand
The desire of purchasers, consumers, or clients for a particular good or service coupled with the ability to pay for it.
- Master the ideas pertaining to price elasticity in demand and supply contexts.
Verified Answer
VK
vijay krishna1 day ago
Final Answer :
B
Explanation :
When the demand for a good is price inelastic, a decrease in price leads to a smaller percentage increase in quantity demanded, resulting in a decrease in total revenue. This is because consumers are not very responsive to price changes for inelastic goods.
Learning Objectives
- Master the ideas pertaining to price elasticity in demand and supply contexts.