Assuming demand is inelastic,if a firm wants to increase its total revenue,it should raise price.

Question

Quizplus · Accepted Answer

When demand is inelastic, it means that consumers are relatively unresponsive to changes in price. Therefore, if a firm wants to increase its total revenue (which is calculated as price multiplied by quantity), it could raise its price and likely see only a small decrease in the quantity demanded. This would result in a higher total revenue, as the increase in price would outweigh the decrease in quantity.

Assuming Demand Is Inelastic,if a Firm Wants to Increase Its