If the supply of a good decreases and it causes total revenue to increase, this shows that the good has a(n)
A) elastic demand.
B) inelastic supply.
C) elastic supply.
D) unit elastic demand.
E) inelastic demand.

Question

Quizplus · Accepted Answer

When the supply of a good decreases and total revenue increases, it indicates that the quantity demanded does not decrease significantly with an increase in price, which is characteristic of inelastic demand.

If the Supply of a Good Decreases and It Causes