Question

28. When demand is unit elastic, what is the price elasticity? What is the effect on total revenue of a price change? a. The price elasticity exactly equals 1 and total revenue does not change when price changes. b. The price elasticity exactly equals 1 and total revenue and price move in opposite directions. C. The price elasticity exactly equals 1 and total revenue and price move in the same direction. d. The price elasticity approaches infinity and total revenue does not change when price changes.