If demand is unit-elastic throughout the demand curve, then total revenues are
A) greater the higher the price.
B) lower the higher the price.
C) maximized at the midpoint of the demand curve.
D) the same for any price the firm charges.

Question

Quizplus · Accepted Answer

When demand is unit-elastic, the percentage change in quantity demanded is equal to the percentage change in price, meaning total revenue (price times quantity) remains constant regardless of the price.

If Demand Is Unit-Elastic Throughout the Demand Curve, Then Total