Question

The more inelastic demand is, the:

more sellers have to gain by restricting supply to raise price and total revenue.

less sellers have to gain by restricting supply to raise price and total revenue.

more sellers have to gain by raising supply to lower price and raise total revenue.

smaller will be the effect on total revenue of a change in price.

Answer 1

Answer
option 1
more sellers have to gain by restricting supply to raise the price and total revenue
explanation:

Inelastic demand means a change in the price of 1% changes in quantity by less than 1%; it means almost 0%.
if supply is decreased then the consumer need to purchase it and can pay more price so the revenue increase because of restricting supply as the buyer can not change the demand for the good
Inelastic goods are medician, or an inelastic service is medical services. It means the services or goods are needed now and the quantity cannot change with price.
If the supply is increased the quantity demanded will not change. It will not increase revenue.
The same is told by an elastic and inelastic demand with revenue relationship as revenue is maximum when the demand is unit elastic, and it can increase if the demand is inelastic and processes or if the demand is elastic and prices decrease.