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Suppose that demand is unitary elastic at all points. When price is increased from a point on this demand curve, then total revenue will_____________.
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Suppose that demand is unitary elastic at all points. When price is increased from a point on this demand curve, then total revenue will_____________.

User Princey James
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15 votes
15 votes

Answer: not change

Step-by-step explanation:

When a good's demand is said to be unitary elastic, it means that an increase in price causes a proportional decrease in quantity demanded which means that neither effect would have dominance over the other.

When this happens, total revenue will not change because the increase (decrease) in price will be cancelled out by the decrease (increase) in quantity demanded.

User Jineesh
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