The diagram shows the demand curve for a product with unitary price elasticity.
What will happen with such a curve?
1 )
A fall in price will bring about an increase in total expenditure on the product.
2 )
A fall in price will bring about an increase in sales but a fall in total expenditure on the product.
As the price rises, total expenditure on the product stays the same.
4 )
As the price rises, total expenditure on the product rises and then falls.
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