中等ECON-ELAS-012
PED = −0.8 and the firm raises price. Total revenue will:
A. Fall, because quantity demanded falls
B. Rise, because demand is price-inelastic✓ 答案
C. Fall to zero
D. Fall only if the good is inferior
解說
|PED| = 0.8 < 1, so demand is inelastic. The percentage rise in price exceeds the percentage fall in quantity, and total revenue rises. Inferior goods are classified by YED, not by this revenue test.