Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 4 - Elasticity - Questions - Page 90: 6d

Answer

Total revenue would increase.

Work Step by Step

Regardless if supply is elastic or inelastic, total revenue would increase if price rises as price has a positive relationship as defined in the law of supply, and an increase in price would result in an increase in quantity supplied, and thus the elasticity of supply is not relevant in the change in total revenue.
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