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.

---

Definitions:

Variable Cost Per Unit

The amount of variable expenses incurred to produce one unit of a product or service.

Budgeted Hours

The number of hours allocated or planned for a particular task, project, or period, usually part of a financial or operational plan.

Standard Hours

The predetermined amount of time expected to complete a task or produce a unit of output under normal conditions.

Actual Production

The quantity of goods or services produced during a specific time period, as opposed to planned or projected output.