When Demand Is Inelastic and Price Decreases

question 96

Multiple Choice

When demand is inelastic and price decreases:

• A)the effect of the decrease in price on total revenue dominates the effect of the increase in quantity demanded on total revenue; overall total revenue declines.
• B)the effect of the increase in quantity demanded on total revenue dominates the effect of the decrease in price on total revenue; overall total revenue increases.
• C)the effects of the decrease in price on total revenue and the corresponding increase in quantity demanded on total revenue perfectly offset one another; overall total revenue remains unchanged.
• D)quantity demanded and total revenue fall to zero.

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Definitions:

The Crisis

The Crisis refers to the official magazine of the NAACP, founded in 1910, which was a major outlet for African-American political and cultural discourse in the early 20th century.

Progressivism

A political and social philosophy advocating for reform and improvement through governmental action.

Theodore Roosevelt

The 26th President of the United States, known for his progressive policies, leadership of the Rough Riders, and contributions to conservation.

Tulsa, Oklahoma

Known for the Tulsa Race Massacre of 1921, where a white mob attacked residents, homes, and businesses in the predominantly African American neighborhood of Greenwood, leading to significant loss of life and property.