If a consumer's total expenditure on a good does not vary with price, then that consumer's demand curve is unit elastic over that range of prices.

Question

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Unit elasticity means that the percentage change in quantity demanded is equal to the percentage change in price. If total expenditure remains constant, it implies that the change in quantity demanded exactly offsets the change in price, resulting in unit elasticity. Therefore, if a consumer's total expenditure on a good does not vary with price, then their demand curve is unit elastic over that range of prices.

If a Consumer's Total Expenditure on a Good Does Not