Question

After a producer determines that the demand for one of its products is inelastic, why would this firm probably raise the price of this product? Consumer demand would probably increase. The firm’s costs of production would probably decrease. The firm’s total revenues would probably increase. Competition would decrease.

Answer 1

Answer: The answer to your question is The firms total revenue would increase.

Answer 2

The answer is: The firms total revenue would increase.

A product would be categorized as 'inelastic' if the change in price of the product wouldn't affect the number of demand that the sellers receive for the products much.

Because of this, increasing the price of the products would most likely resulted in an increase in revenue. Usually, inelastic products tend to be the ones that considered as basic necessities such a foods, gas, oil, clothing, etc.