Suppose that an increase in the price of a good leads to an increase in total revenue.Ignoring other factors (like supply),at its current price the good must be:
A)price-inelastic.
B)price-elastic.
C)perfectly price-elastic.
D)inferior.

Question

Quizplus · Accepted Answer

If an increase in price leads to an increase in total revenue, the demand for the good must be relatively inelastic. This means that consumers are not very sensitive to changes in price and are willing to pay the extra amount, resulting in higher revenue for the seller.

Suppose That an Increase in the Price of a Good