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

If the demand curve is unit elastic, the percentage change in quantity demanded is equal to the percentage change in price, so total expenditure remains the same regardless of the price or quantity. Thus, total expenditure at point A is equal to total expenditure at point B.

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