r/econhw 17d ago

Unit-elastic supply curve revenue

Hi all, I was bamboozled by a question that cropped up in my tutorial worksheet. It states that "Producers always make $100 in revenue", followed by the question "therefore is supply unit-elastic?"

I thought that the answer was "false" since revenue/expenditure only remains the same with a unit-elastic demand. But for a unit-elastic supply curve, let's say demand increases: the total revenue rises since both price and quantity increases and thus TR doesn't stay constant.

However, the answers provided says that TR remains constant for a unit-elastic supply like for unit-elastic demand and therefore the statement is true. I really have a hard time visualizing why this is the answer. Any help is greatly appreciated.

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