Spacely Inc.'s sprockets have inelastic demand. If Spacely raises the price of sprockets, what will be the result?

Spacely Inc.'s sprockets have inelastic demand. If Spacely raises the price of sprockets, what will be the result?



a. a decrease in product inventory

b. an increase in market share

c. a decrease in market share

d. a decrease in total revenue

e. an increase in total revenue



Answer: e. an increase in total revenue


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