If the demand for coffee is relatively inelastic then an inc

If the demand for coffee is relatively inelastic, then an increase in the supply of coffee will:

A. Decrease the total revenue of coffee growers.

B. Increase the total revenue of coffee growers.

C. Not change the total revenue of coffee growers.

D. Increase the price elasticity of coffee demand

OPtion A seems to be correct as in relatively inelastic demand more change in price of goods leads less change in quantity of goods

Hence it will decrease the Price in less amount but revenue will increase

let Q1 and Q2 are quantity demanded before and after rise respectively

P1 and P2 are price demanded before and after

Q1>Q2 and P1<P2

|(Q1-Q2)/Q2|<|(P1-P2)/P2|

(Q1/Q2)-1<(P1/P2)-1

Q1/Q2<P1/P2

P1Q1/P2/Q2<(P1/P2)^2>1

(P1/P2)^2>1

(P1Q1/P2Q2)<1

P1Q1<P2Q2

Option B is correct response