When the Demand Curve Is Inelastic, Total Revenues Go Down

question 21

True/False

When the demand curve is inelastic, total revenues go down in proportion to a price increase.

---

Definitions:

Mailbox Rule

A rule providing that an acceptance of an offer becomes effective on dispatch.

Air-conditioned Bus

A bus equipped with a system to cool and dehumidify the air, providing comfort to passengers.

Tour Group

A group of individuals organized for the purpose of traveling together, usually with a guide or planned itinerary.

Transact Business Electronically

The conduct of business activities through electronic means, such as the Internet or other digital platforms, rather than through physical exchanges or face-to-face.