In which of the following instances does total revenue increase?
A)price falls and supply is inelastic
B)price falls and demand is unit-elastic
C)price rises and demand is inelastic
D)price rises and demand is elastic
E)price falls and demand is perfectly inelastic

Question

Quizplus · Accepted Answer

When the price rises and demand is inelastic, the quantity demanded will not decrease significantly in response to the price increase. Therefore, the increase in price will result in an increase in total revenue.

In Which of the Following Instances Does Total Revenue Increase