Along a straight-line demand curve, total revenue is the highest when elasticity of demand is:
A) zero.
B) 1.
C) infinity.
D) between zero and 1.

Name: Along a straight-line demand curve, total revenue is the highest when elasticity of demand is: A) zero. B) 1. C) infinity. D) between zero and 1.
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Question

Quizplus · Accepted Answer

Total revenue is maximized when the price elasticity of demand is unitary (equal to 1), meaning that the percentage change in quantity demanded is equal to the percentage change in price.

Along a Straight-Line Demand Curve, Total Revenue Is the Highest