If demand for Farmer John's maple syrup is inelastic, then when Farmer John raises the price of maple syrup, his total revenue will
A) increase.
B) decrease.
C) stay the same.
D) probably change, but more information is needed to determine if the total revenue increases, decreases, or stays the same.

Question

Quizplus · Accepted Answer

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

If Demand for Farmer John's Maple Syrup Is Inelastic, Then