Final answer:
If the price elasticity of demand is greater than 1, the price increase will result in a decrease in total revenue. If the price elasticity of demand is less than 1, the price increase will result in an increase in total revenue. If the price elasticity of demand is equal to 1, the price change will not affect total revenue.
Step-by-step explanation:
When the price of a good is increased, the total revenue will depend on the price elasticity of demand. If the price elasticity of demand is greater than 1, which indicates elastic demand, then the price increase will result in a larger percentage decrease in the quantity sold. As a result, total revenue (price x quantity) will fall. However, if the price elasticity of demand is less than 1, which indicates inelastic demand, then the price increase will result in a smaller percentage decrease in the quantity sold. In this case, total revenue will rise. If the price elasticity of demand is equal to 1, which indicates unitary elasticity, then the percentage change in quantity will offset the percentage change in price, resulting in the same total revenue.