If the demand for school ball caps is inelastic, an increase in price will result in
A) a decrease in profits.
B) an increase in total revenue.
C) a decrease in total revenue.
D) an increase in the quantity demanded.

Question

Quizplus · Accepted Answer

When demand is inelastic, it means that consumers are not very responsive to price changes. Therefore, if the price of school ball caps increases, the decrease in quantity demanded will be proportionally smaller than the increase in price, leading to an increase in total revenue.

If the Demand for School Ball Caps Is Inelastic, an Increase