Other things equal,if a firm finds the demand for one of its products is inelastic,it can INCREASE its total revenues by:
A)raising its price.
B)lowering its price.
C)reducing fixed costs.
D)reducing variable costs.

Question

Quizplus · Accepted Answer

If the demand for the product is inelastic, it means that consumers are not very responsive to changes in price. Therefore, if the firm raises its price, the decrease in quantity demanded will be relatively small, and the increase in price will lead to an increase in total revenue.

Other Things Equal,if a Firm Finds the Demand for One