If a Store Sells a Good That Has Inelastic Demand

question 106

Multiple Choice

If a store sells a good that has inelastic demand, what would be the net result on its total revenue from an increase in price of that good?

• A) There would be an increase in total revenue.
• B) There would be no change in total revenue.
• C) There would be a decrease in total revenue.
• D) There would be an initial increase, followed by a decrease, in total revenue.

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Definitions:

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Products and services specifically designed, manufactured, and supplied to armed forces, including weapons, equipment, and military technology.

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An increase in the production of goods and services in an economy over a period of time.

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The acquisition of the territory of Louisiana by the United States from France in 1803, significantly expanding the size of the nation.

Mechanical Reaper

A machine invented in the 19th century that significantly increased the efficiency of harvesting crops.