Question

Suppose that the total revenue received by a company selling basketballs is $600 when the price is set at $15 per basketball and $600 when the price is set at $10 per basketball. without using the midpoint formula, identify whether demand is elastic, inelastic, or unit-elastic over this price range.

Answer 1

I think the answer is unit-elastic over this price range. This happens when a company earns the same revenue even with some slight changes on the prices. It means that slight increase or even decrease in price does not affect the revenue of the company.