If the demand for textbooks is inelastic,then an increase in the price of textbooks will
A)increase total revenue of textbook sellers.
B)decrease total revenue of textbook sellers.
C)not change total revenue of textbook sellers.
D)There is not enough information to answer this question.

Question

Quizplus · Accepted Answer

If the demand for textbooks is inelastic, an increase in the price of textbooks will result in a smaller decrease in quantity demanded than the increase in price, and therefore total revenue of textbook sellers will increase. This is because the demand for textbooks is relatively insensitive to changes in price, and students will still need to purchase the required textbooks regardless of the higher price.

If the Demand for Textbooks Is Inelastic,then an Increase in the Price