if there are substitute then the demand will become elastic a price increase will cause quantity demanded to fall by a higher % therefore total revenue will decrease
How would the following changes in price affect total revenue? That is, would total revenue increase, decline, or remain unchanged?
a. Price falls and demand is inelastic.
b. Price rises and demand is elastic.
c. Price rises and supply is elastic.
d. Price rises and supply is inelastic.
e. Price rises and demand is inelastic.
f. Price falls and demand is elastic.
g. Price falls and demand is of unit elasticity.