If the price elasicity of demand for a product is unity, adecrease in price will

Question

If the price elasicity of demand for a product is unity, adecrease in price will: A.have no effect upon the amount purchased. B.increase the quantity demanded and increase totalrevenue. C.increase the quantity demanded, but decrease totalrevenue. D.increase the quantity demanded, but total revenue will beunchanged. If the price elasicity of demand for a product is unity, adecrease in price will: A.have no effect upon the amount purchased. B.increase the quantity demanded and increase totalrevenue. C.increase the quantity demanded, but decrease totalrevenue. D.increase the quantity demanded, but total revenue will beunchanged.

Explanation / Answer

D.increase the quantity demanded, but total revenue will beunchanged. Explanation Always, the total revenue remains unchanged when the question saysthe price elasticity of demand is unity.

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