Explain why the following statement is true: “A firm with a demand curve that is inelastic at its current output level can always increase its profits by raising its price and selling less.” (Hint:...

Explain why the following statement is true: “A firm

with a demand curve that is inelastic at its current output level can always increase its profits by raising its

price and selling less.” (Hint: Refer back to the discussion of elasticity and total expenditure/total revenue on

pages 113–114.)