_____ occurs when an increase in sales exactly offsets a decrease in price so that total revenue remains exactly the same.
A) Inelastic demand
B) Asymmetrical elasticity of demand
C) Unitary elasticity
D) Highly elastic demand
E) Fixed elasticity

Question

Quizplus · Accepted Answer

Unitary elasticity occurs when a change in price results in an equal percentage change in quantity demanded, leading to a constant total revenue. In other words, the increase in sales offsets the decrease in price, resulting in the same revenue.

_____ Occurs When an Increase in Sales Exactly Offsets a Decrease