If an increase in the price of a good results in an increase in total revenue for the firm,then the supply of the good must be
A)unit elastic.
B)inelastic.
C)elastic.
D)Nothing can be said about price elasticity of supply from the information given.

Question

Quizplus · Accepted Answer

The information given pertains to price elasticity of demand, not supply. An increase in price leading to higher total revenue indicates inelastic demand, but it does not provide information about the elasticity of supply.

If an Increase in the Price of a Good Results