If seller increases the price of the good and the total revenue increases, this implies that the demand for the product is inelastic.

Question

Quizplus · Accepted Answer

If the total revenue increases when the price increases, it means that the increase in price did not significantly impact the quantity demanded. In this case, the demand for the product is said to be inelastic. If the total revenue had decreased when the price increased, it would indicate that demand for the product is elastic.

If Seller Increases the Price of the Good and the Total