When demand is ______, an increase in price ______ total revenue.
A) inelastic; raises
B) inelastic; lowers
C) unit elastic; raises
D) elastic; raises

Question

Quizplus · Accepted Answer

When demand is inelastic, an increase in price leads to a proportionally smaller decrease in quantity demanded. This means that even though the price has gone up, the decrease in quantity demanded is not enough to offset the increase in price, resulting in an overall increase in total revenue.

When Demand Is ______, an Increase in Price ______ Total

When Demand Is , an Increase in Price Total