Suppose that the total revenue received by a company selling basketballs is $600 when the price is set at $30 per basketball and $600 when the price is set at $20 per basketball. without using the midpoint formula, identify whether demand is elastic, inelastic, or unit-elastic over this price range.

Unit elastic

Explanation:

In this example, the demand of the basketballs is unit elastic. Unit elastic is a type of demand in which a change in price causes a proportional change in the quantity demanded of a good. This means that the demand and supply are perfectly responsive to price changes by the same percentage. In this example, the change in price leads to a response in the demand and supply, which allows the producer to maintain the same profits.

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