Assume the demand for coffee is inelastic. If the price of coffee increases, total revenue
A) decreases.
B) remains constant.
C) increases.
D) is negative.

Name: Assume the demand for coffee is inelastic. If the price of coffee increases, total revenue A) decreases. B) remains constant. C) increases. D) is negative.
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Question

Quizplus · Accepted Answer

When demand is inelastic, a price increase leads to a smaller percentage decrease in quantity demanded, resulting in an increase in total revenue.

Assume the Demand for Coffee Is Inelastic