What happens to total revenue given a price increase and demand is inelastic? Why?
Total revenue will rise if the price rises and demand is inelastic. This is because the percentage increase in the price exceeds the percentage decrease in the quantity demanded. Indeed, whenever, the demand is inelastic this means buyers are relatively unresponsive to a change in the price. Therefore, total revenue rises when price rises.
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According to the figure above, which point or points correspond to full employment?
A) only point a B) only point b C) only point c D) points a and b E) points a, b, and c
The cost of producing aspirin increases simultaneously as doctors find that one aspirin per day reduces the risk of heart attacks. The supply of aspirin ________ and the demand for aspirin ________ so that the equilibrium price of aspirin ________
A) increases; increases; rises B) decreases; increases; rises C) increases; decreases; might rise, fall, or stay the same D) decreases; increases; might rise, fall, or stay the same