What is it called when price and total revenue move in the same direction?

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1170536

2026-03-30 12:30

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When price and total revenue move in the same direction, it is referred to as inelastic demand. In this scenario, an increase in price leads to an increase in total revenue, or a decrease in price results in a decrease in total revenue. This typically occurs when the percentage change in quantity demanded is less than the percentage change in price.

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