What occurs when an increase in sales exactly offsets a decrease in price so that total revenue remains exactly the same?
A) highly elastic demand
B) fixed elasticity
C) inelastic demand
D) unitary elasticity

Question

Quizplus · Accepted Answer

When an increase in sales exactly offsets a decrease in price so that total revenue remains exactly the same, it indicates unitary elasticity, which means the change in price and quantity demanded are exactly proportional to each other, resulting in no change in total revenue.

What Occurs When an Increase in Sales Exactly Offsets a Decrease