Figure 6-5

If the demand curve in Figure 6-5 is unit elastic, then total expenditure at A is ____ total expenditure at B.
A)greater than
B)less than
C)equal to
D)less elastic than

Question

Figure 6-5

If the demand curve in Figure 6-5 is unit elastic, then total expenditure at A is ____ total expenditure at B.
A)greater than 
B)less than 
C)equal to 
D)less elastic than

Quizplus · Accepted Answer

In a unit elastic demand curve, the percentage change in quantity demanded is equal to the percentage change in price, resulting in a constant total expenditure at all points on the curve. Therefore, total expenditure at A is equal to total expenditure at B.

Figure 6-5 If the Demand Curve in Figure 6-5 Is Unit Elastic