Suppose the price of a product rises and the total revenue of sellers increases.
A)It can be concluded that the demand for the product is elastic.
B)It can be concluded that the supply of the product is elastic.
C)It can be concluded that the supply of the product is inelastic.
D)No conclusion can be reached with respect to the elasticity of supply.

Question

Quizplus · Accepted Answer

When the price of a product rises and total revenue increases, it indicates that the demand for the product is inelastic, meaning consumers continue to buy the product despite the price increase. This information does not provide direct insights into the elasticity of supply, as supply elasticity concerns how the quantity supplied responds to a price change, not how revenue changes with price.

Suppose the Price of a Product Rises and the Total