When demand is perfectly inelastic, an increase in price will result in
A) a decrease in total revenue.
B) an increase in total revenue.
C) no change in total revenue.
D) a decrease in quantity demanded.
E) an increase in quantity demanded.

Question

Quizplus · Accepted Answer

When demand is perfectly inelastic, quantity demanded does not change with a change in price, so an increase in price leads to an increase in total revenue.

When Demand Is Perfectly Inelastic, an Increase in Price Will