If a firm increases its prices when the demand is inelastic, then the firm will seea. no change in revenues.b. a decrease in revenues.C. no effect on the sales of its product.O d. an increase in revenues.

When the demand is inelastic then there is not much change in demand due to the change in the price.…

Answered: If a firm increases its prices when the…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 34P: The equation for a demand curve is P=2/Q. What is the elasticity of demand as price falls from 5 to...

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If a firm increases its prices when the demand is inelastic, then the firm will see a. no change in revenues. b. a decrease in revenues. C. no effect on the sales of its product. d. an increase in revenues.