The term "unit elasticity" is used to describe a situation in which a rise in price is accompanied by
A)a fall in total expenditure.
B)a rise in total expenditure.
C)constant total expenditure.
D)a unit decrease in total expenditure.

Question

Quizplus · Accepted Answer

In unit elasticity, a change in price leads to an equal percentage change in quantity demanded, resulting in constant total expenditure. Therefore, the correct answer is C: constant total expenditure.

The Term "Unit Elasticity" Is Used to Describe a Situation