What does it mean for demand to be "unitary?"
A) prices go up or down but revenues remain about the same
B) prices remain the same but revenue goes up and down
C) prices and revenue change unpredictably
D) there is never a change in price or revenue

Question

Quizplus · Accepted Answer

When demand is unitary, it means that a change in price will result in an equal but opposite change in quantity demanded, resulting in no net change in total revenue. In other words, the price elasticity of demand is exactly -1.

What Does It Mean for Demand to Be "Unitary