If an increase in the price of a good has no impact on the total revenue in that market demand must be ?
Correct answer: C. unit price elastic
- A. all of these answers
- B. price inelastic
- C. unit price elastic
- D. price elastic
Explanation
Total revenue remains unchanged when a price change causes an exactly proportional opposite change in quantity demanded. This is the definition of unit price elasticity.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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