Multiple Choice
If the price elasticity of demand for Good X is 1 in absolute value, which of the following is TRUE? I. When the price of the good changes, the total revenue for the product does not change. II. A percentage drop in price will lead to an equal percentage increase in quantity demanded. III. When the price of the product rises, total revenue also increases.
A) I only
B) I and II only
C) II and III only
D) II only
Correct Answer:
Verified
Correct Answer:
Verified
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