When the Demand Curve for a Good Is Unit Elastic

question 31

Multiple Choice

When the demand curve for a good is unit elastic, raising the price of the good by 25 percent will raise the revenue of the firm by:

• A) 125 percent.
• B) 100 percent.
• C) 25 percent.
• D) There is not enough information to answer the question.

---

Definitions:

Interests

Preferences or areas of focus that hold an individual's attention and enthusiasm, often leading to exploration, engagement, and satisfaction in learning or activities.

Opinions

Personal views or judgments formed about something, not necessarily based on fact or knowledge.

AIOs

Activities, Interests, and Opinions, a framework used in marketing and sociology to understand consumer behavior by analyzing their daily activities, interests, and opinions.

Psychographics

The study and classification of people according to their attitudes, aspirations, and other psychological criteria, especially in market research.