Unitary Elasticity Means That an Increase in Sales Exactly Offsets

question 56

True/False

Unitary elasticity means that an increase in sales exactly offsets a decrease in prices,so total revenue remains the same.

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Definitions:

Fertilizer

A substance used to enhance the growth of plants and increase yield by supplying essential nutrients.

Bushels

A unit of volume that is used for quantities of dry commodities (such as grains or produce), where the capacity varies according to the commodity.

Profit

The financial gain made in a transaction or operation, calculated as total revenues minus total costs.

Production Function

A mathematical relationship expressing the amount of output generated from different amounts of inputs.