If the price of a good is increased and total revenue received from the sale of this good increases,then the price elasticity of demand for the good is
A)elastic.
B)inelastic.
C)unitary.
D)None of the above

Question

Quizplus · Accepted Answer

If the total revenue received from the sale of a good increases when the price of the good is increased, then the demand for the good is inelastic. This means that consumers are willing to pay a higher price for the good, and the percentage decrease in quantity demanded is less than the percentage increase in price.

If the Price of a Good Is Increased and Total