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When Demand Is Unit Elastic,what Is the Price Elasticity and What

Question 57

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When demand is unit elastic,what is the price elasticity and what is the effect on total revenue of a price change A)The price elasticity exactly equals 1 and total revenue does not change when price changes. B)The price elasticity exactly equals 1 and total revenue and price move in opposite directions. C)The price elasticity exactly equals 1 and total revenue and price move in the same direction. D)The price elasticity approaches infinity and total revenue does not change when price changes.

When demand is unit elastic,what is the price elasticity and what is the effect on total revenue of a price change


A) The price elasticity exactly equals 1 and total revenue does not change when price changes.
B) The price elasticity exactly equals 1 and total revenue and price move in opposite directions.
C) The price elasticity exactly equals 1 and total revenue and price move in the same direction.
D) The price elasticity approaches infinity and total revenue does not change when price changes.

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