If a firm experiences inelastic demand for its product and decides to increase its price, what is likely to happen to its total revenue?

When a firm has inelastic demand for its product, it means that customers are not very sensitive to changes in price. If the firm decides to raise its price, customers will still buy nearly the same amount of the product because they need or want it regardless of the cost. As a result, total revenue, which is the money the firm makes from selling its product, is likely to increase. For example, if a company sells a medication that people need, even if they increase the price, most customers will continue to purchase it. Therefore, in this case, raising the price would lead to higher total revenue for the firm.