When Demand Is Unit Elastic,price Elasticity of Demand Equals

question 285

Multiple Choice

When demand is unit elastic,price elasticity of demand equals

• A)1,and total revenue and price move in the same direction.
• B)1,and total revenue and price move in opposite directions.
• C)1,and total revenue does not change when price changes.
• D)0,and total revenue does not change when price changes.

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Definitions:

Common Difference

The steady gap found between successive numbers in an arithmetic progression.

Common Ratio

In a geometric sequence, the consistent factor by which each term is multiplied to produce the next term.

Geometric Sequence

A geometric sequence is a sequence of numbers where each term after the first is found by multiplying the previous one by a fixed, non-zero number called the common ratio.

Common Ratio

In a geometric sequence, the constant factor by which each term is multiplied to get the next term.