If the price elasticity of demand is less than 1,then a 6% increase in the price will result in an increase in total revenue.

Question

Quizplus · Accepted Answer

When the price elasticity of demand is less than 1, demand is considered inelastic, meaning consumers are relatively unresponsive to price changes. Therefore, a 6% increase in price will lead to a less than proportional decrease in quantity demanded, resulting in an increase in total revenue.

If the Price Elasticity of Demand Is Less Than 1,then