How does an increase in the price of a good affect its market equilibrium when the demand for that good is inelastic?

When the demand for a good is inelastic, a rise in its price causes only a small drop in the quantity demanded. Because buyers keep buying almost the same amount, the supply side can raise its price without losing much volume, so the equilibrium price moves higher. The quantity sold falls a little, but the price increase more than offsets this drop, so total revenue from the good actually goes up. For example, if gasoline’s price jumps by 10 % and demand falls only 5 %, the market settles at a higher price and a slightly lower quantity, but the overall sales income rises. Thus, with inelastic demand, a price hike pushes the equilibrium price up while the quantity sold declines only slightly.