A good is inelastic if:
A)total revenue increases as a result of a price increase.
B)the quantity effect outweighs the price effect of a price increase.
C)the measured elasticity is greater than 1.
D)None of these is true.

Question

Quizplus · Accepted Answer

A good is inelastic if the quantity demanded is relatively unresponsive to changes in price. This means that a price increase will lead to a proportionately smaller decrease in quantity demanded, resulting in an increase in total revenue. Therefore, choice A is the correct answer. Choices B and C are incorrect because they describe the characteristics of elastic goods, not inelastic goods. Choice D is also incorrect because at least one of the choices is true.

A Good Is Inelastic If