If the price of a good is decreased and total revenue received from the sale of this good does not change,then the price elasticity of demand for the good is
A)elastic.
B)inelastic.
C)unitary.
D)None of the above

Question

Quizplus · Accepted Answer

If the total revenue received remains the same despite a decrease in price, it means that the increase in quantity demanded is proportionate to the decrease in price. This is a characteristic of unitary elasticity, where the percentage change in quantity demanded is equal to the percentage change in price.

If the Price of a Good Is Decreased and Total