If the demand curve facing a firm had a price elasticity of demand equal to zero and the firm raised its price, its total revenue would
A) decrease slightly.
B) fall to zero.
C) not change.
D) increase.

Question

Quizplus · Accepted Answer

When the price elasticity of demand is equal to zero, it means that the quantity demanded does not change at all in response to a change in price. Therefore, if the firm raises its price, the quantity sold remains the same, leading to an increase in total revenue.

If the Demand Curve Facing a Firm Had a Price