If the demand for textbooks is inelastic, then a decrease in the price of textbooks will

a. decrease total revenue of textbook sellers.

b. There is not enough information to answer this question.

c. increase total revenue of textbook sellers.

d. not change total revenue of textbook sellers.

Question

Business

Desiree Bailey

20 September, 11:29

If the demand for textbooks is inelastic, then a decrease in the price of textbooks will

a. decrease total revenue of textbook sellers.

b. There is not enough information to answer this question.

c. increase total revenue of textbook sellers.

d. not change total revenue of textbook sellers.

+1

Answers (1)

Know the Answer?

Victoria Harding · Answer 1

decrease total revenue of textbook sellers.

Explanation:

Demand is inelastic if a change in price has a very little effect on the quantity demanded.

If price is reduced, the quantity demanded of textbooks would change by a little amount, so total revenue would fall due to a reduction in the price of textbooks.

Total revenue = price * quantity

If the demand for textbooks is inelastic, then a decrease in the price of textbooks willa. decrease total revenue of textbook sellers.b. There is not enough information to answer this question.c. increase total revenue of textbook sellers.d. not change total revenue of textbook sellers.

If the demand for textbooks is inelastic, then a decrease in the price of textbooks will

a. decrease total revenue of textbook sellers.

b. There is not enough information to answer this question.

c. increase total revenue of textbook sellers.

d. not change total revenue of textbook sellers.