Solved UPSC CDS/OTA Question
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Q · Law of ElasticityMedium · 45s
Which of the following correctly explains the relationship between total revenue and elasticity?
TopicLaw of Elasticity
Question Typemultiple choice
DifficultyMedium
Marking+1 / −0.33
Test Duration30 min
Step-by-Step Solution
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In unitary elasticity, the percentage change in price offsets the percentage change in quantity – TR is constant.
Final Answer: Option B — When demand is unitary elastic, TR remains constant with price change.