When Taylor raised the price of earrings at Taylor's Boutique, her total revenue from selling earrings increased. This suggests that:
A)the demand for Taylor's earrings at the original price was elastic.
B)there are many other boutiques competing with Taylor.
C)there was excess demand for earrings at the original price.
D)the demand for Taylor's earrings at the original price was inelastic.

Question

Quizplus · Accepted Answer

Total revenues increase when price increases if demand is inelastic with respect to price.

When Taylor Raised the Price of Earrings at Taylor's Boutique