Q55
If demand is unitary elastic, a 25% increase in price will result in
A.
25% change in total revenue
B.
No change in quantity demanded
C.
1% decrease in quantity demanded
D.
25% decrease in quantity demanded
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
If demand is unitary elastic, a 25% increase in price will result in 25% decrease in quantity demanded.