If the price of a good increases and the total revenue also increases, the good has a(n)
A) elastic demand.
B) inelastic demand.
C) unit elastic demand.
D) perfectly elastic demand.

Question

Quizplus · Accepted Answer

If the price of a good increases and the total revenue also increases, it means that the demand for the good is relatively unaffected by changes in price, indicating an inelastic demand. Inelastic demand means that consumers are not very responsive to changes in price and will continue to buy the good even if the price increases.

If the Price of a Good Increases and the Total