If the demand curve is inelastic then an increase in price would cause:
A) an increase in total revenue.
B) a decrease in total revenue.
C) an increase or decrease in total revenue.
D) no change in total revenue.

Question

Quizplus · Accepted Answer

When demand is inelastic, consumers are less sensitive to price changes, so an increase in price leads to an increase in total revenue.

If the Demand Curve Is Inelastic Then an Increase in Price