Asked by Vritra Official on Jul 30, 2024
Verified
When demand is unit elastic, a decrease in price will result in no change in total revenue.
Unit Elastic
Describes a scenario where a change in the price of a good results in a proportional change in the quantity demanded or supplied.
Total Revenue
The total amount of money a firm receives by selling goods or services.
- Learn about the relationship that exists between the elasticity of demand and comprehensive revenue.
- Discern the distinctions among elastic, inelastic, and unit elastic types of demand.
Verified Answer
MS
Mattison StephensonJul 31, 2024
Final Answer :
True
Explanation :
When demand is unit elastic, the percentage change in quantity demanded is exactly equal to the percentage change in price, resulting in no change in total revenue.
Learning Objectives
- Learn about the relationship that exists between the elasticity of demand and comprehensive revenue.
- Discern the distinctions among elastic, inelastic, and unit elastic types of demand.
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