Product Cost Sets the Lower Limits of the Price, the Utility Provided By the Product and the Intensity -Bzziii

Product cost sets the lower limits of the price, the utility provided by the product and the intensity of demand of the buyers sets the upper limit. So, in case of inelastic demand, total revenue ………………when price increases 

(a) Rises 
(b) Falls 
(c) Constant 
(d) Both (a) and (b) 




(a) Rises 

Explanation:

Product cost sets the lower limits of the price, the utility provided by the product and the intensity of demand of the buyers sets the upper limit. So, in case of inelastic demand, total revenue Rises when price increases 





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