If a firm raises its price and total revenue increases, then the price elasticity is:
A) elastic.
B) unit elastic.
C) inelastic.
D) absolute.

Question

Quizplus · Accepted Answer

When a firm raises its price and total revenue increases, it indicates that the demand for the product is inelastic. This means that the percentage change in quantity demanded is less than the percentage change in price, leading to an increase in total revenue.

If a Firm Raises Its Price and Total Revenue Increases