What happens to total revenue when the price of milk is increased. Why?
Inelastic goods (goods in which consumers are less responsive to changes in price): e < 1
Elastic goods (goods in which consumers are more responsive to changes in price): e >1© BrainMass Inc. brainmass.com October 10, 2019, 2:39 am ad1c9bdddf
Total revenue will rise when the price of milk is increased.
The total revenue test states that total revenue rises when the price of an inelastic good is increased. ...
This solution comments on the elasticity of milk and what would happen to the total revenue of a dairy company if the price of milk were to rise.