In the relationship between price changes and consumer spending, if A represents a scenario where the price of a necessity increases leading to higher total revenue, and B represents inelastic demand, then C, where the price of a luxury good increases without a significant drop in quantity sold, would correspond to what concept?

In the context of consumer spending and price elasticity, the situation described in C corresponds to the concept of inelastic demand. This means that even when the price of a luxury good increases, consumers are still willing to buy it, which indicates that their demand does not change much despite the price change. For example, if a popular brand of high-end shoes raises its price, many loyal customers might still purchase them because they perceive them as valuable or desirable. This behavior shows that the demand for luxury goods can be less sensitive to price changes, leading to higher total revenue for the seller. Thus, inelastic demand reflects consumers' willingness to continue spending on certain goods, regardless of price increases.