When the price elasticity of demand is unitary and prices go down,total ________.
A) revenues stay the same
B) revenues decline
C) revenues increase
D) profits increase

Name: When the price elasticity of demand is unitary and prices go down,total ________. A) revenues stay the same B) revenues decline C) revenues increase D) profits increase
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Question

Quizplus · Accepted Answer

When the price elasticity of demand is unitary, a decrease in price leads to an equal increase in quantity demanded, resulting in no change in total revenue.

When the Price Elasticity of Demand Is Unitary and Prices