Asked by
Michael Roche
on Nov 04, 2024
Verified
When demand is unit elastic, an increase in price will result in an increase in total revenue.
Unit Elastic
A situation in demand or supply where the elasticity is exactly one, indicating that a change in price results in a proportionate change in the quantity demanded or supplied.
Total Revenue
The total amount of money received by a firm from selling its goods or services.
- Gain insight into the connection between demand elasticity and total revenue generation.
- Differentiate among elastic, inelastic, and unit elastic demand categories.
Verified Answer
CP
Learning Objectives
- Gain insight into the connection between demand elasticity and total revenue generation.
- Differentiate among elastic, inelastic, and unit elastic demand categories.