Inelastic demand, right? How about income elasity of inferior goods.
Yeap, Inelastic demand.
yes, your q remains same but price drops ==> revenues decrease. I hope this is correct
I had to stop and think about the same question. I came back at the end of taking the exam since I had quite a bit of time left and created a little example with numbers so I could “prove” to myself that Inelastic would be correct. Guess it was just me being worried about getting an easy question wrong.