If a firm lowered the price of the product it sells and found that total revenue did not change, then the demand for its product is
A)perfectly inelastic.
B)perfectly elastic.
C)unit elastic.
D)relatively elastic.

Question

Quizplus · Accepted Answer

If a firm lowers the price of a product and total revenue remains the same, then the demand for the product is unit elastic. This means that the percentage change in quantity demanded is equal to the percentage change in price, resulting in no change in total revenue.

If a Firm Lowered the Price of the Product It