Which statement is true about a price elastic product?

A price elastic product is one where the quantity demanded changes significantly in response to price changes. When a product has elastic demand, a reduction in price will lead to a proportionally larger increase in the quantity demanded. This often results in an increase in total revenue for the producers.

Therefore, if producers lower prices for a price elastic product, the substantial increase in the quantity sold can more than compensate for the lower price, leading to higher total revenue. This illustrates the key characteristic of elastic demand: that consumers are very responsive to price changes.

In contrast, the other statements do not accurately describe the behavior associated with price elastic products. For instance, raising prices would typically lead to a significant drop in the quantity demanded, consequently lowering total revenue. Demand does not remain constant, as the hallmark of elastic products is fluctuation in demand with price changes. Lastly, the relationship between supply and price in this context is not directly affected; rather, the emphasis is on demand responsiveness.