When Joe's Gas raises its prices for regular unleaded,total revenue from both regular unleaded falls to zero.It must be the case that:
A)the demand for Joe's regular unleaded gasoline is perfectly elastic.
B)the demand for regular unleaded must be inelastic.
C)there are NOT many good substitutes for regular unleaded gasoline.
D)consumers are switching to premium grades of gasoline.

Question

Quizplus · Accepted Answer

Total revenues increase when price decreases and total revenues decrease when price increases when demand is elastic.

When Joe's Gas Raises Its Prices for Regular Unleaded,total Revenue