Holding all other forces constant,if increasing the price of a good leads to an increase in total revenue,then the demand for the good must be
A)unit elastic.
B)inelastic.
C)elastic.
D)None of the above is correct because a price increase always leads to an increase in total revenue.

Question

Quizplus · Accepted Answer

If an increase in price led to an increase in total revenue, it implies that the quantity demanded did not decrease enough to offset the increase in price. This means that the demand for the good is relatively inelastic.

Holding All Other Forces Constant,if Increasing the Price of a Good