If a firm sells a product that has a perfectly inelastic demand curve, then if price doubles, it can be expected that
A) total revenue will fall by one-half.
B) total revenue will double.
C) total revenue will remain unchanged.
D) supply will decrease.

Question

Quizplus · Accepted Answer

When demand is perfectly inelastic, quantity demanded does not change as price changes. Therefore, if the price doubles, total revenue (price times quantity) also doubles because the quantity sold remains the same.

If a Firm Sells a Product That Has a Perfectly