If an increase in the price of a good leads to an increase in total revenue, then:
A)the supply curve is price inelastic.
B)the demand curve is price inelastic.
C)the supply curve is price elastic.
D)the demand curve is price elastic.

Question

Quizplus · Accepted Answer

When the demand curve is price inelastic, an increase in price leads to a proportionally smaller decrease in quantity demanded, resulting in an increase in total revenue.

If an Increase in the Price of a Good Leads