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.

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Definitions:

Positively Correlated

Describes a relationship between events such that each event is more likely to occur if the other event also occurs.

Diversification

Diversification is an investment strategy that involves spreading investments across various assets to reduce risk and increase the potential for returns.

Positively Correlated

A relationship between two variables in which both variables move in the same direction.

Pooling

In economics, pooling is the amalgamation of resources or interests by several parties to maximize benefit or reduce risk.