Total revenue is more likely to rise when the price rises if
A)there are few substitutes for the good.
B)a high proportion of income is spent on the good.
C)some extended period of time passes.
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

When there are few substitutes for a good, consumers are more likely to continue purchasing the good even if the price increases. This means that as the price increases, the demand for the good will remain relatively stable, leading to a rise in total revenue. B and C are not necessarily true in all cases and are not as significant as having few substitutes.

Total Revenue Is More Likely to Rise When the Price