If a Change in the Price of a Product Results

question 67

Multiple Choice

If a change in the price of a product results in no change in total revenue,what must be the case

• A)The demand for the product must be elastic.
• B)The demand for the product must be inelastic.
• C)The demand for the product must be unit elastic.
• D)The demand for the product must be revenue inelastic.

---

Definitions:

Trade

The exchange of goods, services, or both between two or more parties.

Producer Surplus

The difference between what producers are willing to sell a good for and the market price they actually receive, representing their net benefit.

Free Trade

International trade left to operate without tariffs, quotas, or other restrictions, allowing for the unrestricted exchange of goods and services between countries.

Autarky

A condition in which an economy is self-sufficient and does not engage in international trade.