multiple choice question\nwhile using the total - revenue test, demand is determined to be unit - elastic…
multiple choice question\nwhile using the total - revenue test, demand is determined to be unit - elastic when total revenue\nchanges in the opposite direction from price.\nchanges in the same direction as price.\ndeclines from an infinite amount to zero.\nremains constant as price changes.
Answer
Brief Explanations:
In the total - revenue test, when demand is unit - elastic, a change in price is exactly offset by a proportional change in the quantity demanded in the opposite direction. So, total revenue, which is the product of price and quantity ($TR = P\times Q$), remains constant as price changes.
Answer:
remains constant as price changes.