When demand is unit elastic, a change in price will cause
A) a change in total revenue in the same direction.
B) a change in total revenue in the opposite direction.
C) no change in total revenue.
D) a change in total revenue in either direction depending on whether the price is increasing or decreasing.
C
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Which of the following could explain why the demand for table salt is inelastic?
A) Salt is a luxury for high-income consumers but a necessity for low-income consumers. B) Salt is a rare commodity. C) Salt is a luxury good. D) Households devote a very small portion of their income to salt purchases.
If a bank has $1 million in demand deposits, $350,000 in reserves, and faces a 30 percent reserve requirement, the amount of money that a bank could initially create by loaning out their excess reserves is: a. $50,000
b. $300,000. c. $350,000. d. $700,000.