Use the following for questions 108-115.
Exhibit: The Demand for Bungalow Bob's Bagels

-(Exhibit: The Demand for Bungalow Bob's Bagels) Total revenue remains unchanged if the price ________ from ________.
A) decreases; $0.50 to $0.40
B) decreases; $0.60 to $0.50
C) decreases; $0.70 to $0.60
D) increases; $0.60 to $0.70

Question

Use the following for questions 108-115.
Exhibit: The Demand for Bungalow Bob's Bagels
 
-(Exhibit: The Demand for Bungalow Bob's Bagels) Total revenue remains unchanged if the price ________ from ________.
A) decreases; $0.50 to $0.40 
B) decreases; $0.60 to $0.50 
C) decreases; $0.70 to $0.60 
D) increases; $0.60 to $0.70

Quizplus · Accepted Answer

Total revenue remains unchanged when the price change occurs at the unit elastic point on the demand curve, where the percentage change in quantity demanded equals the percentage change in price.

Use the Following for Questions 108-115