If the demand for ptyalin is unit elastic, then
A)total revenue decreases as quantity demanded increases
B)total revenue increases as quantity demanded increases
C)total revenue increases as price increases
D)total revenue remains constant as price increases
E)total revenue decreases as price increases

Question

Quizplus · Accepted Answer

If the demand for ptyalin is unit elastic, then the percentage change in quantity demanded and price are equal. As a result, the increase in revenue due to an increase in price will be offset by the decrease in revenue due to a decrease in quantity demanded. Therefore, total revenue will remain constant as price increases.

If the Demand for Ptyalin Is Unit Elastic, Then