If a 10 percent rise in the price of goods leads to a 10 percent decrease in quantity demanded, the demand curve for this good
A)is vertical.
B)is horizontal.
C)has slope equal to 1.
D)is a straight line with slope equal to 10.
E)none of the above

Question

Quizplus · Accepted Answer

The demand curve is unit elastic, meaning the percentage change in price leads to an equal percentage change in quantity demanded, but this does not imply any of the specific shapes or slopes mentioned in the other options.

If a 10 Percent Rise in the Price of Goods