If the demand is price inelastic: Options: A . &nbspAn increase in price must raise profits B . &nbspAn increase in price decreases revenue C . &nbspAn increase in price increases revenue D . &nbspA decrease in price reduces sales

If the demand is price inelastic:

Question

If the demand is price inelastic:

Options:

A . An increase in price must raise profits

B . An increase in price decreases revenue

C . An increase in price increases revenue

D . A decrease in price reduces sales

Answer: Option C
:
C
This means that the percentage change in quantity demanded is less than the percentage change in price; this means a price increase will increase revenue.

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