If a good is inelastic, then increasing the price of that good will always lead to an increase in total revenue.

When we say a good is inelastic, it means that people will still buy about the same amount of that good even if the price goes up. This happens because the good is often necessary or has few substitutes, like medicine or basic food items. So, if the price of an inelastic good increases, the total revenue, which is the money made from selling that good, will also increase because customers do not change their buying habits much. For example, if the price of a life-saving medication rises, people will still buy it because they need it, resulting in higher total revenue for the seller. This shows how understanding elasticity helps businesses make better pricing decisions.