Suppose that the total revenue received by a company selling basketballs is $840 when the price is set at $15 per basketball and $840 when the price is set at $10 per basketball. Without using the midpoint formula, can you tell whether demand is elastic, inelastic, or unit-elastic over this price range?

unit elastic

Explanation:

Elastic demand is when the quantity of a good or service that is demanded changes by a larger percentage than its price change. Here, the price has a large impact on the demand of the consumers.

For inelastic demand, the quantity of goods or service that is demanded changes by a percentage that is lower than that of the price.

For unt elastic, the percentage change that occurs in the quantity of the product that is demanded is thesame as the percentage change in price.

In the scenario in the question, we can see that the fall in price doesn't have any effect on the revenue as the revenue is still the same. The demand is said to be unit-elastic.

answercompetitive advantage;