If the price elasticity of demand for a product is -1.0, and the cross-price elasticity of demand for the product with respect to a competitor's product is 5.0, then the firm's total revenue will remain constant if a 1 percent increase in the price of the competitor's product is accompanied by
A) a 1 percent increase in the price of the firm's product.
B) a 5 percent decrease in the price of the firm's product.
C) a 5 percent increase in the price of the firm's product.
D) None of the above is correct.
Correct Answer:
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