Total revenue is the same for every price-quantity combination along a unit elastic demand curve.

Question

Quizplus · Accepted Answer

Total revenue is calculated by multiplying the price of a good by the quantity sold. Along a unit elastic demand curve, as the price of the good increases, the quantity demanded decreases by the same proportion, resulting in no change in total revenue. Similarly, as the price of the good decreases, the quantity demanded increases by the same proportion, also resulting in no change in total revenue. Therefore, total revenue remains the same for every price-quantity combination along a unit elastic demand curve.

Total Revenue Is the Same for Every Price-Quantity Combination Along