If a firm finds the demand for one of its products is inelastic, it can increase its total revenues by
A) lowering its price.
B) increasing fixed costs only.
C) increasing variable costs only.
D) increasing both fixed and variable costs.
E) raising its price.

Question

Quizplus · Accepted Answer

When demand is inelastic, consumers are not very responsive to price changes, so raising the price will lead to an increase in total revenue.

If a Firm Finds the Demand for One of Its