When Demand Is Unit Elastic, a Decrease in Price Will

question 76

True/False

When demand is unit elastic, a decrease in price will result in no change in total revenue.

---

Definitions:

Unit Cost

The expense incurred to produce, store, and sell one unit of a product or service.

Unit Cost

The cost to produce, acquire, or purchase one unit of a product or service, calculated by dividing total costs by the number of units produced or acquired.

Inventory

The total amount of goods or materials in stock, which a business holds to ultimately sell for a profit.

Specific Identification Formula

A method used in inventory accounting that tracks the cost of specific items purchased and sold.