The manager of a company notices that the company's total revenue would increase if the manager raises the price of the company's product. Accordingly, the manager can assert that the demand for the company's product is:
A) elastic.
B) inelastic.
C) unit elastic.
D) zero elastic.

Question

Quizplus · Accepted Answer

If raising the price of the product leads to an increase in total revenue, it indicates that the demand for the product is inelastic. This means that even with an increase in price, consumers are still willing to purchase the product, resulting in a higher total revenue for the company.

The Manager of a Company Notices That the Company's Total