Inelastic demand exists when:
A.
a small percentage decrease in price produces a smaller percentage increase in quantity demanded and total revenue falls.
B.
a small percentage decrease in price produces a larger percentage increase in quantity demanded and total revenue increases.
C.
an increase in price causes a larger increase in quantity demanded and total revenue falls to zero.
D.
the quantity demanded remains the same regardless of level of price and total revenue is unchanged.
Answer: A