When demand is price-inelastic,ceteris paribus,an increase in
A)Price leads to lower total revenue.
B)Total revenue means quantity rises.
C)Total revenue indicates a reduction in price.
D)Price leads to greater total revenue.

Question

Quizplus · Accepted Answer

When demand is price-inelastic, it means that the percentage change in quantity demanded is less than the percentage change in price. Therefore, an increase in price will lead to a smaller percentage decrease in quantity demanded, resulting in greater total revenue.

When Demand Is Price-Inelastic,ceteris Paribus,an Increase in