If the demand curve for comic books is expressed as Q = 10,000/p,then demand has a unitary elasticity
A) only when p = 10,000.
B) only when p = 100.
C) always.
D) never.

Question

Quizplus · Accepted Answer

Demand has unitary elasticity when the absolute value of price elasticity of demand is equal to 1. In this case, the price elasticity of demand is equal to -p/Q times the derivative of Q with respect to p, which simplifies to -p/Q. When p = 10,000, the price elasticity of demand is -1, but at any other price, the price elasticity of demand will be different than 1. Therefore, the demand for comic books has unitary elasticity always.

If the Demand Curve for Comic Books Is Expressed as Q