A unit-elastic demand curve never touches or crosses either of the axes. Why?
What will be an ideal response?
When demand is unit elastic, total expenditure must be the same at every point on the curve. Suppose that at any point the curve, the demand curve were to touch the horizontal axis, meaning that the price would equal zero. Then total expenditure would be zero. Therefore, if the demand curve remains unit elastic along its entire length, it can never cross the horizontal axis. By the same reasoning, it cannot cross the vertical axis. Because the slope of the demand curve is negative, any unit-elastic curve simply must get closer and closer to the axes as it moves away from its middle points. But it will never touch either axis.
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From the point of view of a particular country, capital outflows are:
A. purchases of domestic assets by foreigners. B. purchases of foreign goods or services by domestic households or firms. C. purchases of domestic goods or services by foreigners. D. purchases of foreign assets by domestic households or firms.
What is the Social Security system?
What will be an ideal response?
An advantage of a negative income tax is that there are no disincentives to earning additional income
a. True b. False
The Malthusian theory is most applicable today to the _____ countries.
Fill in the blank(s) with the appropriate word(s).