Multiple Choice
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.
Correct Answer:
Verified
Correct Answer:
Verified
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