If the formula for elasticity results in a measure of elasticity (E)equal to 1,the increase in sales exactly offsets the decrease in price,so total revenue remains the same.

Question

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When elasticity (E) is equal to 1, it indicates unitary elasticity, meaning the percentage change in quantity demanded is equal to the percentage change in price, resulting in no change in total revenue.

If the Formula for Elasticity Results in a Measure of Elasticity