A good is unit elastic if:
A)total revenue stays the same as a result of a price increase.
B)the quantity effect outweighs the price effect of a price increase.
C)the measured elasticity is less than 1.
D)All of these are true.

Question

Quizplus · Accepted Answer

When a good is unit elastic, the percentage change in quantity demanded is equal to the percentage change in price, so total revenue remains unchanged when the price changes.

A Good Is Unit Elastic If