If Price Falls and Demand Is Inelastic, Then Total Revenue

question 70

True/False

If price falls and demand is inelastic, then total revenue should rise.

---

Definitions:

Interest

The cost of borrowing money or the return earned on investments, typically expressed as a percentage.

Borrower

An individual, corporation, or other entity that receives funds from another party under the condition of returning the funds plus interest or other charges at a later date.

Lender

A financial institution or individual that provides funds to a borrower under the condition that the funds will be repaid with interest.

Supply

The aggregate sum of a good or service ready for sale at a specific price level.