If a change in the price of a product results in no change in total revenue,what must be the case
A)The demand for the product must be elastic.
B)The demand for the product must be inelastic.
C)The demand for the product must be unit elastic.
D)The demand for the product must be revenue inelastic.

Question

Quizplus · Accepted Answer

If a change in price leads to no change in total revenue, it means that the percentage change in quantity demanded is exactly equal to the percentage change in price. This is only possible if the demand is unit elastic because only in this case the increase in revenue due to the higher price is exactly offset by the decrease in revenue due to the lower quantity demanded.

If a Change in the Price of a Product Results