Exhibit 5-16
-Consider Exhibit 5-16. Since the product P x Q remains constant between points a and b, demand must be

Name: Exhibit 5-16 -Consider Exhibit 5-16. Since the product P x Q remains constant between points a and b, demand must be
Brand: Quizplus
Rating: 4.9 (43 reviews)

Question

Exhibit 5-16 
-Consider Exhibit 5-16. Since the product P x Q remains constant between points a and b, demand must be

Quizplus · Accepted Answer

Since P x Q remains constant between a and b, the elasticity of demand is equal to 1 (unit elastic). At this point, a change in price will be offset by an equal change in quantity demanded, resulting in no change in total revenue.

Exhibit 5-16 -Consider Exhibit 5-16. Since the Product P X Q Remains