The demand for heart surgery is price inelastic. So it follows that
A) the percentage change in price is less than the resulting percentage change in quantity demanded.
B) if the price of heart surgery increases, total expenditure by consumers on heart surgery will rise.
C) changes in price do not affect the number of operations demanded.
D) both a and b
E) all of the above

Question

Quizplus · Accepted Answer

When demand is price inelastic, an increase in price leads to an increase in total revenue because the percentage change in quantity demanded is less than the percentage change in price.

The Demand for Heart Surgery Is Price Inelastic