A firm's price increase would actually lead to a rise in its total revenues when consumers have ___ demand

Name: A firm's price increase would actually lead to a rise in its total revenues when consumers have ___ demand
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Question

Quizplus · Accepted Answer

When demand is inelastic, it means that consumers are not very sensitive to price changes. Therefore, a price increase would not significantly reduce the quantity demanded, leading to an increase in total revenue for the firm.

A Firm's Price Increase Would Actually Lead to a Rise