- Refer to Figure 20.2.Suppose the areas 0P₁AB and 0P₂CD are equal.We can conclude that the price elasticity of demand between point A and point C is

Question

- Refer to Figure 20.2.Suppose the areas 0P₁AB and 0P₂CD are equal.We can conclude that the price elasticity of demand between point A and point C is A)Elastic. B)Inelastic. C)Unitary elastic.

Quizplus · Accepted Answer

When the areas under the demand curve are equal, it indicates that the total revenue remains constant, which is a characteristic of unitary elasticity.