If the price elasticity of demand for shelled, roasted, unsalted peanuts is 0.86 at current prices, a small increase in price will raise producers' total revenue.

Question

Quizplus · Accepted Answer

When the price elasticity of demand is less than 1 (inelastic), an increase in price leads to an increase in total revenue because the percentage drop in quantity demanded is smaller than the percentage increase in price.

If the Price Elasticity of Demand for Shelled, Roasted, Unsalted