Which of the following is a TRUE statement?
A)If demand is inelastic and the price increases,the total revenue will decrease.
B)If demand is inelastic and the price increases,the total revenue will increase.
C)If demand is elastic and the price increases,the total revenue will increase.
D)If demand is elastic and the price decreases,the quantity demanded will decrease.

Question

Quizplus · Accepted Answer

If demand is inelastic, a price increase will lead to an increase in total revenue. This is because the decrease in quantity demanded due to the price increase will be outweighed by the increase in price per unit.

Which of the Following Is a TRUE Statement