Exhibit 5-5 Demand curve for computers

-In Exhibit 5-5, if the area OABC equals the area ODEF, the demand curve is:
A) elastic.
B) inelastic.
C) unitary elastic.
D) nonelastic.

Question

Exhibit 5-5 Demand curve for computers
​ 
-In Exhibit 5-5, if the area OABC equals the area ODEF, the demand curve is:
A) elastic. 
B) inelastic. 
C) unitary elastic. 
D) nonelastic.

Quizplus · Accepted Answer

When the area OABC equals the area ODEF, it means that a given percentage change in price results in an equal percentage change in quantity demanded. This is known as unitary elasticity, thus the answer is C.

Exhibit 5-5 Demand Curve for Computers