-The above figure shows the demand curve for crude oil.The demand curve has unitary price elasticity when price equals
A) $0.
B) $1.
C) $10.
D) $20.

Question

-The above figure shows the demand curve for crude oil.The demand curve has unitary price elasticity when price equals
A) $0. 
B) $1. 
C) $10. 
D) $20.

Quizplus · Accepted Answer

Unitary price elasticity occurs when the percentage change in quantity demanded is equal to the percentage change in price, resulting in an elasticity of 1. At a price of $10, given the linear nature of the demand curve depicted, this is the point where a proportional change in price would result in an equal proportional change in quantity demanded, indicating unitary elasticity.

-The Above Figure Shows the Demand Curve for Crude Oil