What will happen to the business revenue if there is an increase in price but the quantity demanded is inelastic?
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What will happen to the business revenue if there is an increase in price but the quantity demanded is inelastic?
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Answer:
On the other hand, if the price for an inelastic good is increased and the demand does not change, the total revenue increases due to the higher price and static quantity demanded. ... This means that firms that deal in inelastic goods or services can increase prices, selling a little less but making higher revenues.
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