A decrease in supply (shift to the left) will increase total revenue in that market if a. supply is price inelastic b. supply is price elastic c. demand is price inelastic d. demand is price elastic

When supply decreases (shifts to the left), the equilibrium price typically rises while the equilibrium quantity falls. The impact on total revenue depends on the elasticity of demand: - **If demand is price inelastic**: The percentage increase in price is greater than the percentage decrease in quantity demanded. As a result, total revenue (Price × Quantity) increases. - **If demand is price elastic**: The percentage increase in price is less than the percentage decrease in quantity demanded. This leads to a decrease in total revenue. Given the options: - **Option c. demand is price inelastic** is correct because a price inelastic demand curve means that the total revenue will increase when supply decreases. **Answer:** c. demand is price inelastic