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If Demand Is Unitary Elastic, a Reduction in Price Leaves

Question 105

Multiple Choice

If demand is unitary elastic, a reduction in price leaves total revenue unchanged because


A) the percentage increase in quantity demanded exceeds the percentage decrease in price.
B) the percentage decrease in price exceeds the percentage increase in quantity demanded.
C) demand is unresponsive to changes in price.
D) the percentage changes in quantity demanded and price are equal.

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