A good with a unit elastic demand has a:
A) perfectly horizontal demand curve.
B) perfectly vertical demand curve.
C) price elasticity greater than 1.
D) price elasticity equal to −1.

Question

Quizplus · Accepted Answer

A good with unit elastic demand has a price elasticity of demand equal to -1, which means that a change in price will result in an equal percentage change in quantity demanded, resulting in no change in total revenue.

A Good with a Unit Elastic Demand Has A