Assume that when a lamp manufacturer decreases its price its total revenue does not change. What do we know?
A)Demand is price inelastic.
B)Demand is price elastic.
C)Demand is unitary elastic.
D)Demand is perfectly price elastic.

Question

Quizplus · Accepted Answer

When total revenue remains unchanged as price decreases, it indicates that the percentage change in quantity demanded is exactly equal to the percentage change in price, which is characteristic of unitary elastic demand.

Assume That When a Lamp Manufacturer Decreases Its Price Its