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Melanie Kriska
on Nov 17, 2024

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When demand is inelastic, a decrease in price increases total revenue.

Inelastic Demand

A situation where the demand for a product does not significantly change with a change in the product's price, indicating that consumers are less sensitive to price changes.

Total Revenue

The total receipts from sales of a given quantity of goods or services. It is the total income of a business from its sales activity.

Price

The amount of money required to purchase something or the value that consumers are willing to exchange for a good or service.

  • Identify the distinctions between inelastic and elastic demand.
  • Gain an understanding of the interplay between pricing adjustments, demand levels, and cumulative revenue.
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KM
Kai-Shawn MalloryNov 18, 2024
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