If the demand for a product is inelastic, what will happen to total revenue if price is increased?
Below is my response but I need more words.
The total revenue will increase. When demand is inelastic, a given percentage increase in price corresponds to a smaller percentage decrease in quantity demanded. Thus total revenue, which is equal to price times quantity, must increase. The percentage change in the quantity demanded is less than the percentage change in price, then demand is inelastic.
For example; If the demand for insulin is inelastic, an increase in insulin prices leads to more total revenue for insulin makers.