When demand is price inelastic, a price increase will also increase total revenue.

Name: When demand is price inelastic, a price increase will also increase total revenue.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When demand is price inelastic, it means that the percentage change in quantity demanded is less than the percentage change in price. Therefore, when prices increase, the decrease in quantity demanded is relatively small, leading to an increase in total revenue.

When Demand Is Price Inelastic, a Price Increase Will Also