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23 November, 17:06

If a firm decreases the price of a product and total revenue decreases, then the demand for this product is price elastic. the income elasticity is less than 1. the demand for this product is price inelastic. the cross elasticity is negative.

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  1. 23 November, 20:26
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    The demand for the product is price inelastic

    Explanation:

    Inelastic demand means a change in the price of a good, will not have a significant effect on the quantity demanded.

    Inelastic demand in economics is when people buy about the same amount whether the price drops or rises. As seen in the question, even thought the price was dropped, it doesn't increase the demand for the produce hence the decrease in revenue.
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