If demand is unit elastic, an increase in price will lead to an increase in total revenue.

Name: If demand is unit elastic, an increase in price will lead to an increase in total revenue.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

If demand is unit elastic, a change in price will result in an equal percentage change in quantity demanded, meaning that total revenue will remain the same. Therefore, an increase or decrease in price in this scenario will not lead to an increase in total revenue.

If Demand Is Unit Elastic, an Increase in Price Will