Raising the price on inelastic goods generally leads to... an increase in revenue. an increase in expenses. a decrease in expenses. a decrease in revenue.

When prices are raised on inelastic goods, consumers are less sensitive to the price change, meaning they will continue to purchase roughly the same amount. This results in an increase in total revenue since the price increase outweighs the decrease in quantity sold. Think about essentials like salt or medicine; no matter how high the price goes, people need them! A common mistake is assuming that all goods are inelastic or that changes in price won't affect demand at all. It's crucial to analyze the specific market and consumer behavior, as even necessities can have varying degrees of elasticity based on availability and consumer preferences. Remember to conduct thorough market research before making pricing decisions!