If total revenues rise when the market price increases, then we know that
A) demand is inelastic.
B) demand is elastic.
C) demand is unit-elastic.
D) its demand has zero elasticity.

Question

Quizplus · Accepted Answer

When total revenues increase as the market price increases, it indicates that the quantity demanded does not decrease proportionately, which is characteristic of inelastic demand.

If Total Revenues Rise When the Market Price Increases, Then