If prices rise substantially on milk and total revenue does not change significantly, then milk is probably:
A) elastic.
B) inelastic.
C) unit elastic.
D) absolute.

Question

Quizplus · Accepted Answer

When total revenue does not change significantly as prices rise, the product is considered to be unit elastic, meaning the percentage change in quantity demanded is equal to the percentage change in price.

If Prices Rise Substantially on Milk and Total Revenue Does