Economics 9708 · AS & A Level · Price elasticity of demand

Price elasticity of demand — practice question

A firm estimates that, if everything else stays constant, a rise in its output would not change its revenue. What can be deduced from this about the price elasticity of demand for the firm’s product?

  • AIt is –1.
  • BIt is +1.
  • CIt is perfectly inelastic.
  • DIt is perfectly elastic.

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