Which of the following is a true statement?
A) If demand is inelastic and the price increases, the total revenue will decrease.
B) If demand is inelastic and the price increases, the total revenue will increase.
C) If demand is elastic and the price increases, the total revenue will increase.
D) If demand is elastic and the price decreases, the quantity demanded will decrease.

Question

Quizplus · Accepted Answer

When demand is inelastic, it means that the quantity demanded does not change significantly with a change in price. Therefore, if the price increases, consumers will still purchase nearly the same amount, leading to an increase in total revenue.

Which of the Following Is a True Statement