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.
Calculating Price Elastic of Demand. Products whose sales volumes change more with price shifts are considered to have elastic demand. Goods and services whose sales volumes change little with price alterations are considered to have inelastic demand. To calculate how elastic or inelastic a product is, the percent change in price is divided from the percentage change in quantity demanded. So if sales decrease 40 percent because the price of a good increases 20 percent, the formula is -40 percent divided by 20 percent. The price elasticity of demand is measured at -2.