4) Which of the following is FALSE regarding inelastic demand? 4) _______
A) If a firm lowers price, total revenues will fall.
B) Price elasticity of demand is less than 1 (Ep < 1).
C) Price elasticity of demand is greater than 1 (Ep > 1).
D) If a firm raises price, total revenues will go up.
Option B is the answer.
Because if the quantity of a good demanded or purchased changes more than the price change, the product is termed elastic not inelastic.
4) Which of the following is FALSE regarding inelastic demand? 4) _______ A) If a firm...