If the demand for a product is inelastic, then a price increase will result in a decrease in total revenue.

Question

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If the demand for a product is inelastic, a price increase will not always result in a decrease in total revenue. In some cases, the increase in price may lead to a small decrease in quantity demanded, but the increase in price would result in a larger increase in total revenue, as the decrease in quantity demanded is not significant enough to outweigh the increase in price.

If the Demand for a Product Is Inelastic, Then a Price