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Sir, I have always wondered how and infact why in case of inelastic demand for a product the fall in Price leads to fall in qty demanded and cause a consequent fall in total revenue? Doesn’t this contradict the whole premise of Price and demand Law?
Thanks in advance:)
I do not know where you are getting this from, but if demand is completely inelastic the the demand will not be affected by a change in the selling price.
Therefore lower selling price will result in lower total revenue (because the demand will be the same), and a higher selling price will result in higher total revenue.
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