If the demand for a product is inelastic, . a price decrease leaves total revenue unchanged. b. a price increase leaves total revenue unchanged. c. a price increase causes total revenue to increase. d. a price decrease causes total revenue to increase.

c. A price increase causes total revenue to increase.

Explanation:

If the demand for a product is inelastic, a price increase causes total revenue to increase. This is the case because inelastic demand negates the law of demand, which states that the higher the price, the lower the quantity demanded of products and the lower the price the higher the quantity demanded. In the case of inelastic demand, demand does not change with a change in price be it an increase or a decrease. For example under an inelastic demand situation quantity demanded of 20 would remain the same at a price of $5 and when it increases to $7 as such initial revenues at $5 is $100 and at the new price of $7 it increases to $140.

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