If demand is inelastic then an increase in price would cause a _____ in the quantity demanded and a(n) _____ in total revenue:
A) decrease; increase
B) decrease; decrease
C) increase; increase
D) increase; decrease

Question

Quizplus · Accepted Answer

When demand is inelastic, quantity demanded decreases with a price increase, but total revenue increases because the percentage change in quantity demanded is less than the percentage change in price.

If Demand Is Inelastic Then an Increase in Price Would