Question

An increase in price causes an increase in total revenue when demand is

Answer 1

Answer:

elasticity of demand will be inelastic

Explanation:

Here in the question it is provided in the statement that with an increase in price there is an increase in total revenue

Therefore,

change in price and change in revenue will be positive

Mathematically,

$\frac{dR}{dP}$ > 0

Now,

When,

$\frac{dR}{dP}$ > 0

then,

the elasticity of demand will be Ed will be < 1

which means the elasticity of demand will be inelastic