Question

Does inelastic demand increase revenue?.

Answer 1

A one percent change in price for an inelastic item causes a smaller than one percent change in the quantity required.

• Total revenue will grow when an inelastic good's price is raised, but total revenue will drop when its price is lowered. Increasing price will result in lower revenue if demand is not elastic to price changes.
• If demand is not elastic, demand will drop more slowly than the price as it rises. Revenue will rise as a result. Demand will grow less than the price reduction if there is inelastic demand, which occurs as prices decline. As a result, revenue will decline.
• A price change that decreased resulted in reduced overall income when you are inelastic, which occurs when a significant percent change in price results but a smaller percent change in quantity required.

This is how inelastic demand affects revenue.

Refer here to learn more about Inelastic demand: brainly.com/question/28001343

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