Producers' total revenue will increase if
A) income increases and the good is an inferior good.
B) the price rises and demand is elastic.
C) the price rises and demand is inelastic.
D) income falls and the good is a normal good.

Question

Quizplus · Accepted Answer

When demand is inelastic, consumers are less sensitive to price changes, so an increase in price leads to a proportionally smaller decrease in quantity demanded, resulting in higher total revenue.

Producers' Total Revenue Will Increase If