If an increase in the price of accordions does not change total revenue from accordion sales, we can infer that demand for accordions is inelastic.

Question

Quizplus · Accepted Answer

When the price of a good increases and total revenue remains unchanged, it indicates that the demand for that good is unit elastic, meaning the percentage change in quantity demanded is equal to the percentage change in price.

If an Increase in the Price of Accordions Does Not