What happens to total revenue if price increases and demand is inelastic? Why?

What will be an ideal response?


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.?

Economics

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Economics