When demand is isoelastic what happens to total revenue?

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1088513

2026-03-13 02:45

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When demand is isoelastic, the price elasticity of demand remains constant at a specific value, typically equal to one. In this case, total revenue remains unchanged when the price changes because the percentage change in quantity demanded offsets the percentage change in price. Thus, if the price increases or decreases, total revenue remains stable.

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