Question

When demand is own price-inelastic, a price decrease  ______________________ total revenue.

Answer 1

An inelastic demand is that type of demand in which even there is very high change in the price can causes very low change in the quantity demanded

The value of price elasticity of demand for an inelastic good is always less than one

So for an inelastic demand the price and revenue moves in the same direction

It means if price increases then total revenue will also increases and vice versa is also true

So from the given statement if price decreases then total revenue will also decrease