When Demand Is Inelastic, a Decrease in Price Will Result

question 164

True/False

When demand is inelastic, a decrease in price will result in an increase in total revenue.

---

Definitions:

Premium Rates

The cost of insurance coverage, typically charged monthly or annually, determined by risk factors and the amount of coverage.

Fair Debt Collection Practices Act

U.S. legislation aimed at promoting fair debt collection practices and protecting consumers against abusive, deceptive, and unfair collection practices.

Digital Music Player

A portable electronic device designed to play digital audio files, such as MP3s, without needing physical media like CDs.

Fair Credit Reporting Act

A federal law in the United States designed to ensure the accuracy, fairness, and privacy of consumer information contained in the files of consumer reporting agencies.