Demand is unit elastic when
A) the slope of the demand curve is -1.
B) a shift of the supply curve leads to no change in price.
C) a shift of the supply curve leads to an equal shift of the demand curve.
D) a change in the price of the product leads to no change in the total revenue.

Question

Quizplus · Accepted Answer

Demand is unit elastic when a change in the price of the product leads to no change in the total revenue, meaning the percentage change in quantity demanded is equal to the percentage change in price.

Demand Is Unit Elastic When