What Happens to Revenues When the Demand Curve Is Unit

question 126

Multiple Choice

What happens to revenues when the demand curve is unit elastic and the price changes?

• A) Revenues increase when the price increases.
• B) Revenues remain unchanged.
• C) Revenues decrease when the price increases.
• D) The change in revenues cannot be estimated.

---

Definitions:

Prospects For The Future

Speculations or expectations about what may happen or be achieved in the time to come.

Marginal Situation

A scenario where an individual or group is at the brink of significant change, often on the verge of either improvement or deterioration.

Basic Assumption

An underlying, taken-for-granted belief or principle that is not questioned or critically examined.

Berger

Peter L. Berger is a sociologist known for his work in the sociology of knowledge, understanding how societal beliefs and values are shaped and maintained.