Question

If an increase in the price of a good has no impact on the total revenue in that market, demand must be ________.

1) price inelastic
2) price elastic
3) unit price elastic
4) all of the answer choices

Answer 1

If an increase in the price of a good has no impact on the total revenue in that market, demand must be price inelastic.

Step-by-step explanation:

If an increase in the price of a good has no impact on the total revenue in that market, demand must be price inelastic. When demand is price inelastic, a change in price does not significantly affect the quantity demanded or the total revenue. This means that even if the price increases, the decrease in quantity demanded would be relatively small, resulting in no change in total revenue.