When Demand Is Unit Elastic, a Change in Price Causes

question 8

Multiple Choice

When demand is unit elastic, a change in price causes total revenue to stay the same because

• A)the percentage change in quantity demanded exactly offsets the percentage change in price.
• B)buyers are buying the same quantity.
• C)total revenue never changes with price changes.
• D)the change in profit is offset by the change in production cost.

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Definitions:

Hemat

A prefix in medical terminology that relates to blood.

Mal-

A prefix added to the start of a word to indicate a negative quality or the act of doing something poorly or badly.

Amyl

A prefix referring to a compound formed from pentane by the replacement of a hydrogen atom with a functional group.

Cirrh-

A prefix in medical terminology indicating a relation to yellow, used in conditions related to liver dysfunction.