If prices increase by the same percentage that quantity demanded decreases, then the demand curve is
A) elastic.
B) inelastic.
C) unitary elastic.
D) perfectly elastic.

Question

Quizplus · Accepted Answer

When the percentage change in quantity demanded is equal to the percentage change in price, the demand curve is considered unitary elastic. This means that the total revenue remains unchanged as the price changes.

If Prices Increase by the Same Percentage That Quantity Demanded