If the demand curve is unit elastic, this implies that:
A) consumers do not react to a change in product price.
B) the good can only be purchased in units of 1.
C) this good has no good substitutes.
D) the good is a basic food staple.
E) the percentage change in the quantity demanded = the percentage change in product price.

Question

Quizplus · Accepted Answer

A unit elastic demand curve means that the percentage change in quantity demanded is equal to the percentage change in price. This suggests that consumers are very sensitive to changes in price and will adjust their quantity demanded accordingly.

If the Demand Curve Is Unit Elastic, This Implies That