Assertion (A): If a good's demand is unitary elastic, total expenditure on it is the same at every price.
Reason (R): A unitary elastic demand curve is a rectangular hyperbola.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

Both are true.
On a rectangular hyperbola, price × quantity is constant at every point, which is exactly why spending never changes: R explains A.

Concept: Unitary elasticity and the rectangular hyperbola
Typical timeTypical: 100 s
Your timeYours: —

The rule this testsThe total expenditure method

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Ten questions from Price Elasticity of Demand, at your own pace.

Assertion (A): If a good's demand is unitary elastic, total expenditure on it is the same at every price.Reason (R): A unitary elastic demand curve is a rectangular hyperbola.

Explanation

Assertion (A): If a good's demand is unitary elastic, total expenditure on it is the same at every price.
Reason (R): A unitary elastic demand curve is a rectangular hyperbola.