Suppose you are a supplier and you are currently charging a price of $45 per unit for your good. You have estimated that when price = $50, the demand for your product is unit-elastic. If you decrease price to $40... Group of answer choices Revenue will increase. Revenue will decrease. Revenue will stay the same. We do not have enough information to answer this question.
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Unit elasticity means that the percentage change in quantity demanded is equal to the percentage change in price. This implies that if the price changes, the total revenue (price times quantity) remains constant. Show more…
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