Question : When demand is unitary elastic, a price increase results in:
Option 1: An increase in total revenue
Option 2: A decrease in total revenue
Option 3: No change in total revenue
Option 4: An indeterminate change in total revenue
Answer (1)
17th Jan, 2024
Correct Answer: No change in total revenue
Solution : The correct answer is (c) No change in total revenue
When demand is unitary elastic, a price increase results in no change in total revenue.
Comments (0)
