Price of a commodity increases. The demand is inelastic if;

T.E. on the commodity increases.

The correct answer is Option (2) → T.E. on the commodity increases.

If the price of a commodity increases and the demand is inelastic, it means that the quantity demanded does not decrease significantly in response to the price increase. In this case, the total expenditure (T.E.) on the commodity increases because the higher price offsets the relatively small decrease in quantity demanded.