If demand is unitary elastic,a price decrease results in
A)an increase in total seller's total revenue
B)no change in total seller's total revenue
C)a decrease in total expenditure on the good
D)a decrease in quantity demanded of the good
E)an increase in supply of the good

Question

Quizplus · Accepted Answer

In unitary elastic demand, a price decrease will lead to an equal increase in quantity demanded, resulting in no change in total revenue for the seller. Total expenditure on the good may increase due to the increase in quantity demanded, but this does not necessarily result in increased revenue for the seller. An increase in supply is not necessarily related to changes in demand elasticity or price.

If Demand Is Unitary Elastic,a Price Decrease Results in