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A unit price elastic demand curve will t...

A unit price elastic demand curve will touch

A

both price and quantity axis

B

neither price axis, nor quantity axis

C

only price axis

D

only quantity axis

Text Solution

Verified by Experts

The correct Answer is:
B
Unit elastic refers to an elasticity alternative in which any percentage change in price cause an equal percentage change in quantity. In other words, any change in price, whether big or small, triggers exactly the same percentage change in quantity. However, the unit price elastic demand curve does not touch either price axis or quantity axis.
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