Figure 7-16
Which of the demand curves in Figure 7-16 is unit elastic?
A) the curve in graph a
B) the curve in graph b
C) the curve in graph c
D) the curve in graph d
E) the curve in graph e

Question

Figure 7-16 
Which of the demand curves in Figure 7-16 is unit elastic?
A) the curve in graph a 
B) the curve in graph b 
C) the curve in graph c 
D) the curve in graph d 
E) the curve in graph e

Quizplus · Accepted Answer

The demand curve in graph c has a slope of -1, which means it has unit elasticity. Unit elasticity occurs when the percentage change in quantity demanded is equal to the percentage change in price. As price changes, the quantity demanded changes in equal proportion, resulting in a constant elasticity of demand.

Figure 7-16 Which of the Demand Curves in Figure 7-16 Is Unit