Figure 6-7

In Figure 6-7, which total expenditure curve belongs to a demand curve that is unit elastic throughout?
A)1
B)2
C)3

Question

Figure 6-7

In Figure 6-7, which total expenditure curve belongs to a demand curve that is unit elastic throughout?
A)1 
B)2 
C)3

Quizplus · Accepted Answer

A demand curve is unit elastic throughout when its elasticity is equal to 1. Looking at the graph, we can see that curve C has an elasticity of 1 at every point along the curve. Therefore, the total expenditure curve that belongs to a demand curve that is unit elastic throughout is curve C.

Figure 6-7 in Figure 6-7, Which Total Expenditure Curve Belongs to a Belongs