Which of the following occurs when an increase in sales exactly offsets a decrease in price so that total revenue remains exactly the same?
A)inelastic demand
B)functional elasticity of demand
C)unitary elasticity
D)highly elastic demand

Question

Quizplus · Accepted Answer

A situation where an increase in sales offsets a decrease in price, resulting in no change in total revenue, is called unitary elasticity of demand. This indicates that the price elasticity of demand is exactly 1, which means that demand is equally responsive to changes in price, and a change in price does not affect the total expenditure on the product.

Which of the Following Occurs When an Increase in Sales