A-LevelEconomicsThe price system and the microeconomy9708/12 · May/June 2010 · Q71 Mark
The demand for a commodity has unitary price elasticity. Which diagram shows the relationship between total expenditure on the commodity and its price?
This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.
A[Diagram A showing total expenditure constant regardless of price]
B[Diagram B showing total expenditure increasing linearly with price]
C[Diagram C showing total expenditure increasing then decreasing with price]
D[Diagram D showing total expenditure decreasing with price]
✓ Correct answer
A: [Diagram A showing total expenditure constant regardless of price]
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