When Demand Is Unit Elastic, a Change in Price Will

question 111

Multiple Choice

When demand is unit elastic, a change in price will cause

• A) a change in total revenue in the same direction.
• B) a change in total revenue in the opposite direction.
• C) no change in total revenue.
• D) a change in total revenue in either direction depending on whether the price is increasing or decreasing.

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Definitions:

Statement of Changes

A financial statement delineating how and why specific equity accounts in a company's balance sheet changed over a period.

Net Assets

The total assets of a company minus its total liabilities, representing the owners' equity in the company.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, typically comprising the balance sheet, income statement, and statement of cash flows.

Profit-Oriented Business

A business that operates with the primary goal of earning revenue in excess of its operating costs.