If the price elasticity of demand is unit elastic, a 10 percent increase in price will result in a 10 percent increase in revenue.

Question

Quizplus · Accepted Answer

If the price elasticity of demand is unit elastic, it means that the percentage change in quantity demanded is equal to the percentage change in price. Therefore, a 10% increase in price will result in a 10% decrease in quantity demanded. As a result, total revenue will remain the same (there will be no increase or decrease).

If the Price Elasticity of Demand Is Unit Elastic, a 10