If price and total revenue vary in opposite directions,demand is:

A) perfectly inelastic.
B) perfectly elastic.
C) relatively inelastic.
D) relatively elastic.

Question

If price and total revenue vary in opposite directions,demand is:A)  perfectly inelastic.B)  perfectly elastic.C)  relatively inelastic.D)  relatively elastic.

Alysa Daphne Mante · Accepted Answer

Final Answer : D, Explanation :  When price and total revenue vary in opposite directions, demand is said to be relatively elastic. This is because as the price increases, the quantity demanded decreases, which results in a decrease in total revenue. Similarly, as the price decreases, the quantity demanded increases, which results in an increase in total revenue. Therefore, demand is relatively elastic.

If price and total revenue vary in opposite directions,demand is:

A) perfectly inelastic.
B) perfectly elastic.
C) relatively inelastic.
D) relatively elastic.

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