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
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.
Question : When the price elasticity of demand is greater than 1, a decrease in price will result in:
Question : When demand is elastic, a decrease in price will result in:
Question : When demand is inelastic, a decrease in price will result in:
Question : When the price elasticity of demand is less than 1, the demand is:
Question : When the price elasticity of demand is greater than 1, the demand is:
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile