Housing has a demand elasticity of 0.12. If suppliers raise housing prices by 10 percent, quantity demanded falls by only 1.2 percent, as . What happens to total revenue collected on housing?

1. Total revenue is price multiplied by quantity. 2. Housing's demand elasticity is 0.12, far below one, so demand is highly inelastic. 3. Table 5.3 states that under inelastic demand, a price rise causes only a smaller percentage fall in quantity, so total revenue rises. 4. Here the 10 percent price rise is only offset by a 1.2 percent quantity drop, so revenue clearly rises rather than falling. 5. Revenue rising, not collapsing, is the outcome, which rules out option B. _Source: OpenStax Principles of Microeconomics for AP Courses (CC BY 4.0), Ch 5 "Elasticity", section 5.3 | Elasticity and Pricing_