If the demand for cigarettes is inelastic, Multiple Choice Total revenue will rise if the price of cigarettes rises. No matter how high the price goes, the quantity demanded will not fall. Total revenue will fall if the price of cigarettes rises. A price reduction will actually cause the quantity demanded to fall.

Total revenue will rise if the price of cigarettes rises

Explanation:

Demand is inelastic if a change in price leads to a little change in quantity demanded. If price is increased, the fall in quanitity demanded would be little compared to the increase in price so total revenue would increase.

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