Question

Which of the following describes a situation in which demand must be inelastic?

a- Total revenue decreases by 10 percent when the price of spats rises by 10 percent.
b- Total revenue decreases by less than 10 percent when the price of spats rises by 10 percent.
c- Total revenue increases by more than 10 percent when the price of spats rises by 10 percent.
d- Total revenue decreases by $10 when the price of spats rises by $10.
e- Total revenue decreases by more than $10 when the price of spats rises by $10.

Answer 1

B total revenue decrease by 10 percent when the prices of spat rises by 10 percent