A-LevelEconomicsThe price system and the microeconomy9708/12 · Feb/Mar 2017 · Q71 Mark
The price elasticity of demand for a firm's product is equal to one for all price changes. What would be the result of this?
Apercentage increase in price will cause demand to fall by a larger percentage.
Bpercentage increase in price will cause demand to increase by the same percentage.
CQuantity demanded will always be the same whatever the price.
DThe firm's revenue will always be the same whatever the price.
✓ Correct answer
D: The firm's revenue will always be the same whatever the price.
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