When demand is inelastic,an increase in price will cause
A)an increase in total revenue.
B)a decrease in total revenue.
C)no change in total revenue but an increase in quantity demanded.
D)no change in total revenue but a decrease in quantity demanded.

Question

Quizplus · Accepted Answer

When demand is inelastic, consumers are not very responsive to price changes, so an increase in price leads to a proportionally smaller decrease in quantity demanded, resulting in an increase in total revenue.

When Demand Is Inelastic,an Increase in Price Will Cause