Figure 7-10

-Refer to Figure 7-10.Using the total revenue test to verify the price elasticity between points a and b on the demand curve,demand is
A) perfectly inelastic.
B) unit-elastic.
C) perfectly elastic.
D) elastic.

Question

Figure 7-10
 
-Refer to Figure 7-10.Using the total revenue test to verify the price elasticity between points a and b on the demand curve,demand is
A) perfectly inelastic. 
B) unit-elastic. 
C) perfectly elastic. 
D) elastic.

Quizplus · Accepted Answer

The total revenue test indicates that if total revenue remains constant when the price changes, the demand is unit-elastic.

Figure 7-10 -Refer to Figure 7-10.Using the Total Revenue Test to Verify