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Commerce · Q52

Economics

Graduate and Post Graduate · Commerce · question 52

Q52

When demand is perfectly inelastic, an increase in price will result in

A.
A decrease in total revenue
B.
An increase in total revenue
Answer
C.
No change in total revenue
D.
A decrease in quantity demanded

Answer: Option B

Solution

Answer: Option B
Solution:
When demand is perfectly inelastic, an increase in price will result in an increase in total revenue.