Looking at the relationship between elasticity and total revenue, we can see that ____.
A) b and c
B) when demand is unit elastic, small price changes don't change total revenue
C) when a good is price inelastic, revenue increases when prices increase
D) when a good is price elastic, revenue increases when prices increase
E) total revenue is maximized when the elasticity has stopped changing

Question

Quizplus · Accepted Answer

When demand is unit elastic, total revenue remains unchanged with small price changes. For price inelastic goods, revenue increases with price increases.

Looking at the Relationship Between Elasticity and Total Revenue, We