things being equal,if a firm finds the demand for one of its products is inelastic,it can increase its total revenues by
A) lowering its price.
B) increasing fixed costs only.
C) increasing variable costs only.
D) increasing both fixed and variable costs.
E) raising its price.

Question

Quizplus · Accepted Answer

If the demand for a product is inelastic, it means that consumers are willing to pay a higher price for the product and are not very responsive to changes in price. Therefore, by increasing the price of the product, the firm can increase its total revenues.

Things Being Equal,if a Firm Finds the Demand for One