Which of the following statements is true?
A)When a firm lowers the price of its product, total revenue always falls.
B)When a firm raises the price of its product, total revenue always rises.
C)When a firm raises the price of its product, total revenue always falls.
D)When a firm lowers the price of its product, total revenue always rises.
E)none of the above

Question

Quizplus · Accepted Answer

The relationship between price changes and total revenue is not always direct; it depends on the price elasticity of demand for the product. Total revenue could rise, fall, or remain unchanged with changes in price, making none of the provided absolute statements universally true.

Which of the Following Statements Is True