If the price elasticity of demand is unit, then a fall in price:

Reduces revenue

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Leaves revenue unchanged

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Increases revenue

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Reduces costs

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Solution

The correct option is B
Leaves revenue unchanged

This means the percentage change in quantity demanded equals the percentage change in price. So, price changes will not alter the revenue.

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If the price elasticity of demand is unit, then a fall in price:

The correct option is B Leaves revenue unchanged This means the percentage change in quantity demanded equals the percentage change in price. So, price changes will not alter the revenue.

The correct option is B
Leaves revenue unchanged

This means the percentage change in quantity demanded equals the percentage change in price. So, price changes will not alter the revenue.