if quantity demanded goes down what happens to total revenue
If demand is inelastic, we know that the increase in price will cause quantity demanded to fall just a little. When price goes up, quantity demanded goes down, but not by much. To be precise, when demand is inelastic, the percentage change in quantity demanded is smaller than the percentage change in price.f price goes up and quantity remains unchanged, total revenue will rise. But the second effect is that quantity in fact will not remain unchanged. When price goes up, the quantity demanded (and therefore the quantity sold) goes down. And by itself, the lower quantity causes total revenue to go down.