Depending on who you ask, a rent-to-own store could be a good place to get some furniture or electronics as a short-term purchase. Or it could be one of the biggest scams around. The most telling aspect of the way these stores do business is the pricing. In most of these establishments, prices are not marked.
Report Abuse. If the demand is inelastic, the number of units stays pretty much the same whether the price goes up or down. In this example, the price goes down, and demand stays the same, so total revenue will also go down.n the case of perfectly inelastic demand, i.e. demand does not change, the number of units sold will not change at all, so revenue will decrease by the same percentage that the price falls. Source(s): Degree in Economics.
This is known as being perfectly inelastic. Therefore, inelastic demand occurs when the ratio of quantity demanded to price is between zero (perfectly inelastic) and one (unit elastic). Here's a real life example using beef prices in 2014. Prices rose 28%, but demand only fell 14.9%.