Q98
If price and total revenue move in the same direction, then demand is
A.
Inelastic
AnswerB.
Elastic
C.
Unrelated
D.
Perfectly elastic
Answer: Option A
Solution
Answer: Option A
Solution:
If price and total revenue move in the same direction, then demand is Inelastic. If you decrease the good's price, a large increase occurs in quantity demanded, and total revenue increases.