The correct answer is "the demand for the good must be unit elastic".

Here's why:

1. Elasticity of demand measures how responsive quantity demanded is to a change in price.

2. If demand is elastic, a change in price will result in a more than proportionate change in quantity demanded, thus changing total revenue.

3. If demand is inelastic, a change in price will result in a less than proportionate change in quantity demanded, thus also changing total revenue.

4. If demand is unit elastic, a change in price will result in an exactly proportionate change in quantity demanded, thus total revenue remains unchanged.

5. The statement "buyers must not respond at all to changes in price" is incorrect because if there was no response at all, it would mean that demand is perfectly inelastic, which is not the case here as total revenue would change in that scenario.

Question

The correct answer is "the demand for the good must be unit elastic".

Here's why:

1. Elasticity of demand measures how responsive quantity demanded is to a change in price.

2. If demand is elastic, a change in price will result in a more than proportionate change in quantity demanded, thus changing total revenue.

3. If demand is inelastic, a change in price will result in a less than proportionate change in quantity demanded, thus also changing total revenue.

4. If demand is unit elastic, a change in price will result in an exactly proportionate change in quantity demanded, thus total revenue remains unchanged.

5. The statement "buyers must not respond at all to changes in price" is incorrect because if there was no response at all, it would mean that demand is perfectly inelastic, which is not the case here as total revenue would change in that scenario.

Knowee AI · Accepted Answer

The correct answer is "the demand for the good must be unit elastic".

Here's why:

1. Elasticity of demand measures how responsive quantity demanded is to a change in price.

2. If demand is elastic, a change in price will result in a more than proportionate change in quantity demanded, thus changing total revenue.

3. If demand is inelastic, a change in price will result in a less than proportionate change in quantity demanded, thus also changing total revenue.

4. If demand is unit elastic, a change in price will result in an exactly proportionate change in quantity demanded, thus total revenue remains unchanged.

5. The statement "buyers must not respond at all to changes in price" is incorrect because if there was no response at all, it would mean that demand is perfectly inelastic, which is not the case here as total revenue would change in that scenario.

If a change in the price of a good results in no change in total revenue:Group of answer choicesthe demand for the good must be elasticthe demand for the good must be inelasticthe demand for the good must be unit elasticbuyers must not respond at all to changes in price

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