The answers are “remain constant” and “decrease”. A good is
considered to be inelastic, when a good does not have many substitutes or
alternatives. In the given problem, electricity is considered to be an
inelastic product, it does not have any easy alternatives. If the price of
electricity increases, quantity demand will remain constant, since no matter
how high the price of electricity, citizens do not have a choice but to avail
it, yet total revenue will decrease.
