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Answer to Question #235402 in Economics for Sifiso Siboniso NA
Question #235402
If the total revenue from the sales of a good rises by 10% when its price is increased by 10%, the demand for the good must
A. be unitary elastic.
B. be perfectly price elastic.
C. be perfectly price inelastic.
D. have a price elasticity of -1.
A. be unitary elastic.
B. be perfectly price elastic.
C. be perfectly price inelastic.
D. have a price elasticity of -1.
Expert's answer
A. be unitary elastic.
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