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For a commodity with a unitary elastic demand curve if the price of the commodity raises, then the consumer’s total expenditure on this commodity would: 
  • a)
    Increase
  • b)
    Decrease
  • c)
    Remains constant 
  • d)
    Either increase or decrease 
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
For a commodity with a unitary elastic demand curve if the price of th...
When the demand is unitary elastic, an increase or decrease in price of good will have no effect on total expenditure. So the total expenditure of consumer will remain same with an increase in price.
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Most Upvoted Answer
For a commodity with a unitary elastic demand curve if the price of th...
Will decrease their quantity demanded by the same percentage as the increase in price. For example, if the price of a unitary elastic good increases by 10%, the quantity demanded will decrease by 10%. This is because the elasticity of demand is exactly equal to one, meaning that the percentage change in quantity demanded is equal to the percentage change in price. Therefore, the consumer's response to a change in price is proportionate to the magnitude of the change, resulting in no change in total revenue for the seller.
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Community Answer
For a commodity with a unitary elastic demand curve if the price of th...
Yes it remains constant bcoz in unitary elastic demand the value is 1 therefore what percent price rise same rate demand decrease
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For a commodity with a unitary elastic demand curve if the price of the commodity raises, then the consumer’s total expenditure on this commodity would:a)Increaseb)Decreasec)Remains constantd)Either increase or decreaseCorrect answer is option 'C'. Can you explain this answer?
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