Which of the statements below does not describe a demand curve that is unit elastic?
A) The percentage change in the quantity demanded equals the percentage change in product price.
B) An increase in product price will not change total revenue.
C) The price elasticity of demand equals one.
D) A change in price does not change quantity demanded.

Question

Quizplus · Accepted Answer

A demand curve that is unit elastic means that the percentage change in quantity demanded is equal to the percentage change in product price. This means that total revenue remains the same when the price changes. The price elasticity of demand is equal to one in a unit elastic demand curve. However, if a change in price does not change the quantity demanded, it means that the demand curve is perfectly inelastic, not unit elastic. Therefore, statement D does not describe a demand curve that is unit elastic.

Which of the Statements Below Does Not Describe a Demand