If a consumer's total expenditure on a good does not vary with its price, then that consumer's demand curve is unit elastic over that range of prices.

Question

Quizplus · Accepted Answer

When a consumer's total expenditure on a good remains constant regardless of changes in its price, the demand curve is said to be unit elastic. This means that the percentage change in quantity demanded is equal to the percentage change in price, resulting in a constant expenditure.

If a Consumer's Total Expenditure on a Good Does Not