Demand is unit elastic when
A)an increase in supply does not change the price of the good.
B)a decrease in supply raises the price of the good.
C)a change in price does not change total revenue.
D)the slope of the demand curve is -1.
E)the slope of the demand curve is +1.

Question

Quizplus · Accepted Answer

When demand is unit elastic, a change in price will result in an equal proportional change in quantity demanded, which means that total revenue will remain the same. Therefore, Option C accurately describes unit elastic demand.

Demand Is Unit Elastic When