Question : A unit price elastic demand curve will touch
Option 1: Both price and quantity axis .
Option 2: Neither price axis , nor quantity axis.
Option 3: Only price axis .
Option 4: Only quantity axis .
Correct Answer: Neither price axis , nor quantity axis.
Solution : The correct option is Neither price axis, nor quantity axis.
The price (vertical axis) or quantity (horizontal axis) axis will never be touched by a unit price elastic demand curve during its entire length. This implies that if a good or service's price goes up by a particular percentage, the quantity desired will drop by precisely that same amount, resulting in no change in consumers' overall spending. On the other hand, if the price drops by a given amount, the quantity required will go up by the same amount.
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