Answer to Question #64325 in Microeconomics for Mahmud Hasan Siddique

Question

A demand schedule with a constant elasticity of one will be:
a) vertical
b) A curve with the same slope at any point.
c) a straight line
d) a curve with the same area beneath any point
Explain why?

Answer 1

a curve with the same area beneath any point
The demand for a good is unitary elastic if a change in the price of that good causes an equal change in quantity demanded.