If the price elasticity of demand for medical care is estimated to be 0.3, then doctors can raise total revenue by charging their patients more for their services.

Question

Quizplus · Accepted Answer

When the price elasticity of demand is less than 1 (inelastic), it means that the percentage change in quantity demanded is less than the percentage change in price. Therefore, increasing prices will lead to a smaller percentage decrease in quantity demanded, resulting in an increase in total revenue.

If the Price Elasticity of Demand for Medical Care Is