Astra increases the price of her good by 10 percent, but her total revenue does not change. What kind of demand does Astra have for her good?
A) perfectly elastic
B) unit elastic
C) elastic
D) inelastic

Question

Quizplus · Accepted Answer

Unit elastic demand occurs when the percentage change in quantity demanded is exactly equal to the percentage change in price, resulting in no change in total revenue.

Astra Increases the Price of Her Good by 10 Percent