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:

Second-Class Tickets

Tickets offering a level of service and comfort lower than first-class, often at a lower price.

First-Class Tickets

Tickets that allow access to the highest level of service and amenities available on commercial transportation, such as airlines and trains.

Income

Payment acquired, typically at consistent times, for services performed or through investment profits.

Price

The money amount expected, needed, or conferred as a payment for a product.