When demand has unit elasticity, revenue will decrease if price is lowered/raised/stays the same/changes in either direction
Question
Solution 1
Understanding the Concept of Unit Elasticity
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Definition of Unit Elasticity: Unit elasticity occurs when the percentage change in quantity demanded is equal to the percentage change in price. This means that the demand for a product reacts proportionately to price changes.
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Similar Questions
f the demands for goods is price elastic, an increase in its price will increase total revenue in that market.Question 2AnswerTrueFalse
What is the value of the price elasticity of demand (PED) for a product if total revenue remains thesame when the price is reduced?
effect on price and quantity when demand increases and supply decreases, in short
If both demand and supply change simultaneously, the effect on either price or quantity will be .
The percentage change in the quantity of one product demanded compared with the percentage change in price in another product is called -price elasticity.
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