question archive Label the following scenario as example of elastic, inelastic, or unit elastic demand
Subject:EconomicsPrice:2.88 Bought3
Label the following scenario as example of elastic, inelastic, or unit elastic demand. When Cinema Supreme decreases ticket prices by 19%, total revenue does not change.

The answer is unit elastic demand, because in the unit elastic demand, any price decrease is matched with a proportional increase in quantity demand, and the resultant effect is no change in total revenues generation. In this case, the price decrease does not affect total revenue and is an example of unit elastic demand.

