Consider a Good with a Price Elasticity Equal to 1

Multiple Choice

Consider a good with a price elasticity equal to 1 at every point on its demand curve.Which of the following statements is correct?

A) Total revenue always rises exactly in proportion to a drop in the price.
B) Total revenue always rises exactly in proportion to a rise in the price.
C) Total revenue does not change if the price changes.
D) Total revenue drops to zero whenever the price rises.
E) Total revenue always doubles if the price drops.