Sia
Question
Microeconomics
Posted 9 months ago
The city of Xela raised the fees that it charged for dumping waste at the city dump, but the revenue the city earned from dump fees didn't change.
What is the price elasticity of demand for dump fees?
Choose 1 answer:
A) Unit elastic
(B) Elastic
(C) Perfectly inelastic
D Perfectly elastic
(E) Inelastic
Sign in to unlock the answer
Answer from Sia
Posted 9 months ago
Solution
a
Revenue Unchanged: The city of Xela raised the fees for dumping waste, but the revenue remained unchanged
b
Unit Elastic Demand: When the price elasticity of demand is unit elastic, a change in price does not affect total revenue. This is because the percentage change in quantity demanded is exactly equal to the percentage change in price
Answer
A) Unit elastic
Key Concept
Price Elasticity of Demand
Explanation
When the price elasticity of demand is unit elastic, a change in price results in a proportional change in quantity demanded, leaving total revenue unchanged.
Not the question you are looking for? Ask here!
Enter question by text
Enter question by image
Unlock Smarter Learning with AskSia Super!
Join Super, our all-in-one AI solution that can greatly improve your learning efficiency.
30% higher accuracy than GPT-4o
Entire learning journey support
The most student-friendly features
Study Other Question