A local farmer raises the price of his organic potatoes from $2 to $3 per pound. He notices that while some customers buy less, his overall revenue from potato sales has increased. Which of the following best explains this scenario regarding consumer behavior and price elasticity?

In this situation, the farmer has raised the price of his organic potatoes, which means he now charges $3 instead of $2 per pound. Even though some customers are buying fewer potatoes because of the higher price, the total amount of money he makes from selling potatoes has gone up. This can be explained by the concept of price elasticity, which shows how sensitive consumers are to price changes. If the demand for the potatoes is inelastic, it means that customers will still buy them even at a higher price because they value them highly or have few alternatives. For example, if a customer usually buys 10 pounds at $2 (spending $20) but now buys 6 pounds at $3 (spending $18), the farmer still benefits overall because the increase in price compensates for the decrease in quantity sold.