Mr. McConnell observes that when his publisher raises the price of his textbook
The publisher's revenue goes up and he receives a larger royalty check. He may safely conclude that:

Question

Quizplus · Accepted Answer

When the price of a product is raised and revenue increases, it indicates that the demand for the product is inelastic. This means consumers continue to buy the product despite the price increase, which is why Mr. McConnell sees an increase in his royalty check. Elastic demand would result in a decrease in revenue with a price increase, as consumers would buy significantly less.

Mr McConnell Observes That When His Publisher Raises the Price