question suppose that demand is unitary elastic at all points. when price is increased from a point on this…

question suppose that demand is unitary elastic at all points. when price is increased from a point on this demand curve, then total revenue will__________. select the correct answer below: increase decrease not change increase and then decrease

question suppose that demand is unitary elastic at all points. when price is increased from a point on this demand curve, then total revenue will__________. select the correct answer below: increase decrease not change increase and then decrease

Answer

Brief Explanations:

The relationship between price - elasticity of demand and total revenue is key. When demand is unitary elastic ($E_d = 1$), a change in price is exactly offset by the change in quantity demanded in terms of percentage. So, any increase in price will lead to an equal - proportional decrease in quantity demanded such that total revenue (price×quantity) remains the same.

Answer:

not change