If the demand for electricity is inelastic then if the local

If the demand for electricity is inelastic, then if the local utility wants to increase its total revenue, it should _______ its price. Select one: a. lower b. raise c. not change d. frequently change

Solution

In case of Demand being inelastic the right way is to increase the price to raise the revenue because demand of elctricity is invariant to change in price.

therfore option b is correct.