AN EASY ECON QUESTION... HELPPPP?
hello!
I have a quick econ question...
If a firm raises the price of its product, its total revenue will increase only if demand is price inelastic.
Can anyone please explain this :((??? THANKS!<3
Answers & Comments
Verified answer
Naturally as price of a product goes up the demand begins to drop until the price goes down. I assume demand being price elastic is that it is a needed and necessary product for survival, so no matter what if the price goes up people will buy it.