State true or false and justify your answer: When demand is unit elastic, an increase in price will lead to increased total revenue for the product.

The statement is False

Reason: When the demand of a good is unitary elastic, any percentage change in price will bring an equivalent percentage change in quantity demanded of the good. This indicates that, the effect of price change will get nullified by the exact opposite change in the quantity demanded of the good. As a result of which the total revenue will remain the same or unchanged after price change in case of a unitary elastic demand curve.