If total revenue does not change as a result of a rise in the price of a given good, it follows that demand is
A)perfectly elastic.
B)perfectly inelastic.
C)unit elastic.
D)inelastic.
E)elastic.

Question

Quizplus · Accepted Answer

When total revenue remains unchanged as the price of a good increases, it indicates that the quantity demanded decreases in the exact proportion to the price increase, which is characteristic of unit elastic demand.

If Total Revenue Does Not Change as a Result of a Rise