inelastic. unitary elastic. perfectly elastic. Instructor Explanation:The relationship between total revenue and elasticity is discussed on pages 78 and 79 in the text. “If demand is elastic, a decrease in price will increase total revenue . . . If demand is elastic, a price increase will reduce total revenue.” Likewise, “If demand is inelastic, a price decrease will reduce total revenue . .. If demand is inelastic, a price increase will increase total revenue.” Finally, “In the special case of unit elasticity, an increase or a decrease in price leaves total revenue unchanged.”
Points Received:1 of 1 Comments:Question 4.Question :Which is not characteristic of a product with relatively inelastic demand?