The unit-elastic demand curve bends in the middle toward the origin of the graph and at either end moves closer to the axes.

Question

Quizplus · Accepted Answer

This is because a unit-elastic demand curve has a constant elasticity of demand, which means that the percentage change in quantity demanded is equal to the percentage change in price, resulting in a linear curve that bends in the middle. As price and quantity move away from the midpoint, the curve becomes steeper and closer to the axes.

The Unit-Elastic Demand Curve Bends in the Middle Toward the Origin