If the price of a good rises by 10% and the total amount consumers spend on the good remains the same then the good is
A)elastic.
B)inelastic.
C)unit elastic.
D)perfectly inelastic.

Question

Quizplus · Accepted Answer

When the price of a good rises by 10% and the total expenditure on the good remains the same, it indicates that the quantity demanded has decreased in such a way that the increase in price is exactly offset by the decrease in quantity demanded. This scenario is characteristic of unit elastic demand, where the percentage change in quantity demanded is equal to the percentage change in price.

If the Price of a Good Rises by 10% and the Total