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Examveda

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

A. A decrease in total revenue

B. An increase in total revenue

C. No change in total revenue

D. A decrease in quantity demanded

Answer: Option B

Solution(By Examveda Team)

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

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Comments ( 2 )

  1. BIJAYA ARKA
    BIJAYA ARKA :
    2 years ago

    Like necessities goods..ok

  2. Ayushi Boyal
    Ayushi Boyal :
    3 years ago

    can someone give explanation for this question

Related Questions on Economics

Which among the following statement is INCORRECT?

A. On a linear demand curve, all the five forms of elasticity can be depicted

B. If two demand curves are linear and intersecting each other, then, coefficient of elasticity would be same on different demand curves at the point of intersection.

C. If two demand curves are linear and parallel to each other, then, at a particular price, the coefficient of elasticity would be different on different demand curves.

D. The price elasticity of demand is expressed in terms of relaive not absolute changes in Price and Quantity demanded.