Which one of the following statements is not true? A If a good has a price elasticity of demand of 1 at all price levels, total revenue and profit will be the same regardless of the price of the good. B When demand is inelastic, an increase in price would cause a fall in quantity demanded, but total revenue from selling the good would rise. C When demand is elastic, a fall in price would cause an increase in total quantity demanded so that total revenue from selling the good would rise. D A demand curve with a relatively steep slope is usually judged to be inelastic
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If the price elasticity of demand is 1, it means that the demand is unit elastic. In this case, the percentage change in quantity demanded is exactly equal to the percentage change in price. Show more…
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