If a good is price inelastic,an increase in price will decrease total revenues.

Question

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If a good is price inelastic, an increase in price will not necessarily result in a decrease in total revenues. This is because consumers may still be willing to purchase the good at the higher price, resulting in an increase in total revenue despite the price increase. Total revenue will only decrease if the decrease in quantity demanded due to the price increase is greater than the increase in price.

If a Good Is Price Inelastic,an Increase in Price Will