Increasing prices has no effect on total revenue if a product's demand curve is
A) perfectly elastic.
B) elastic.
C) unitary elastic.
D) inelastic.

Question

Quizplus · Accepted Answer

When a product's demand curve is unitary elastic, increasing prices does not affect total revenue because the percentage change in quantity demanded is exactly equal to the percentage change in price, leaving total revenue unchanged.

Increasing Prices Has No Effect on Total Revenue If a Product's