A demand curve for which any price-quantity combination yields the same total expenditure reveals a price elasticity of demand equal to
A)infinity.
B)zero.
C)one.
D)some value greater than one but less than infinity.
E)not enough information to know.

Question

Quizplus · Accepted Answer

If any price-quantity combination yields the same total expenditure, it implies that the demand curve is a rectangular hyperbola with a constant slope of -1. This type of demand curve has a price elasticity of demand that is equal to one.

A Demand Curve for Which Any Price-Quantity Combination Yields the Same