Question

question 1
when demand is price inelastic, ceteris paribus:
an increase in price leads to lower total revenue.
an increase in total revenue means quantity rises.
an increase in total revenue indicates a reduction in price.
an increase in price leads to greater total revenue.
question 2
when demand is unit elastic, price elasticity of demand
equals 1, and total revenue and price move in the same direction.
equals 1, and total revenue and price move in opposite directions.
equals 1, and total revenue does not change when price changes.
equals 0, and total revenue does not change when price changes.
equals infinity, and total revenue would move in the opposite direction of the price change.

Explanation:

1. When demand is price - inelastic (price elasticity of demand < 1), consumers are not very responsive to price changes. So, an increase in price leads to a proportionately smaller decrease in quantity demanded, resulting in greater total revenue.
2. When demand is unit - elastic (price elasticity of demand = 1), the percentage change in quantity demanded is equal to the percentage change in price. As a result, total revenue does not change when the price changes.

Answer:

Question 1: An increase in price leads to greater total revenue.
Question 2: equals 1, and total revenue does not change when price changes.