A company decreases the price of its product from \$30 to \$25, and total revenue increases. What should the company do to maximize revenue?

• A. Maintain the current price, as demand is unit elastic.
• B. Discontinue the product, as demand is perfectly elastic.
• C. Increase the price, as demand is inelastic.
• D. Continue decreasing the price, as demand is elastic.

Answer: (D)