When demand is unit elastic,price elasticity of demand equals
A)1,and total revenue and price move in the same direction.
B)1,and total revenue and price move in opposite directions.
C)1,and total revenue does not change when price changes.
D)0,and total revenue does not change when price changes.

Question

Quizplus · Accepted Answer

When demand is unit elastic, the price elasticity of demand equals 1, meaning that total revenue remains constant when the price changes.

When Demand Is Unit Elastic,price Elasticity of Demand Equals