How would the following changes in price affect total revenue? That is, would total revenue increase, decrease, 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:

a. Price falls and demand is inelastic: Total revenue would decrease. This is because inelastic demand means that the quantity demanded does not change much with the price. So, when the price falls, the quantity demanded does not increase enough to offset the decrease in price, leading to a decrease in total revenue.

b. Price rises and demand is elastic: Total revenue would decrease. Elastic demand means that the quantity demanded changes significantly with the price. So, when the price rises, the quantity demanded decreases significantly, leading to a decrease in total revenue.

c. Price rises and supply is elastic: This would not directly affect total revenue as it is determined by price and quantity demanded. However, if supply is elastic, producers can respond to the price increase by significantly increasing the quantity supplied, potentially leading to a surplus and a subsequent decrease in price.

d. Price rises and supply is inelastic: Again, this would not directly affect total revenue as it is determined by price and quantity demanded. However, if supply is inelastic, producers cannot significantly increase the quantity supplied in response to the price increase. This could potentially lead to a shortage and a further increase in price.

e. Price rises and demand is inelastic: Total revenue would increase. Inelastic demand means that the quantity demanded does not change much with the price. So, when the price rises, the quantity demanded does not decrease enough to offset the increase in price, leading to an increase in total revenue.

f. Price falls and demand is elastic: Total revenue would increase. Elastic demand means that the quantity demanded changes significantly with the price. So, when the price falls, the quantity demanded increases significantly, leading to an increase in total revenue.

g. Price falls and demand is of unit elasticity: Total revenue would remain unchanged. Unit elasticity means that the percentage change in quantity demanded is exactly equal to the percentage change in price. So, when the price falls, the quantity demanded increases in the same proportion, leaving total revenue unchanged.