Question

A demand is price inelastic, which means?

• A. An increase in price must raise profits
• B. An increase in price decrease revenue
• C. An increase in price increase revenue
• D. A decrease in price reduce sales

Answer 1

The correct option is C An increase in price increase revenue

Inelastic demand is when a buyer's demand for a product does not change as much as its change in price.

Hence, it leads to increase in revenue.

Thus, the correct option is C.