When the total amount spent on a commodity remains unchanged as price is raised or lowered,demand is said to be
A) of absolute elasticity.
B) income inelastic.
C) of unitary elasticity.
D) price inelastic.
E) price elastic.

Question

Quizplus · Accepted Answer

When the total amount spent on a commodity remains unchanged as the price is raised or lowered, it is said to have a unitary elasticity of demand. This means that the change in price results in an equal and opposite change in quantity demanded, resulting in no net change in total expenditure.

When the Total Amount Spent on a Commodity Remains Unchanged