If the Demand for a Good Is Price Inelastic, a Decrease

question 4

True/False

If the demand for a good is price inelastic, a decrease in the price of the good will result in a decrease in the total revenue of a firm producing the good.

---

Definitions:

Proportionate Costs

Expenses that vary in relation to the level of activity or volume of output in a business, similar to variable costs.

Wholesale Costs

The price charged for goods or materials when sold in large quantities to retailers or other businesses, as opposed to retail prices charged to consumers.

Overhead Expenses

Costs not directly tied to the production of goods or services but necessary for running a business, such as rent and utilities.

Fraction Form

A mathematical expression representing the division of one quantity by another.