If the price elasticity of demand for a good is 0.5, is demand elastic, inelastic, or unit elastic, and what does it imply about total revenue when price falls?

• A. Elastic; total revenue rises when price falls.
• B. Unit elastic; total revenue remains the same when price falls.
• C. Elastic; total revenue falls when price falls.
• D. Inelastic; total revenue falls when price falls.

Answer: (D)