When demand is unitary elastic,a change in price will leave expenditures on the commodity___________.
A)unchanged
B)at a greater value
C)at a lower value
D)none of the above

Question

Quizplus · Accepted Answer

When demand is unitary elastic, a change in price will lead to a proportional change in the quantity demanded. As a result, the increase or decrease in price will lead to an equal decrease or increase in quantity demanded, leaving the total expenditure on the commodity unchanged. Therefore, option A is the correct answer.

When Demand Is Unitary Elastic,a Change in Price Will Leave