Suppose there is no change in total revenue when the price changes. The demand curve for this good is:
A) perfectly elastic.
B) perfectly inelastic.
C) elastic.
D) inelastic.
E) unitary elastic.

Question

Quizplus · Accepted Answer

When the total revenue does not change as the price changes, the demand for the good is unitary elastic. This means that the percentage change in quantity demanded is equal to the percentage change in price, resulting in no change in total revenue.

Suppose There Is No Change in Total Revenue When the Price