A good that has a unit elastic demand:
A)has a perfectly horizontal demand curve.
B)has a perfectly vertical demand curve.
C)has a measured elasticity greater than 1.
D)None of these is true.

Question

Quizplus · Accepted Answer

A unit elastic demand means the percentage change in quantity demanded is equal to the percentage change in price, which does not correspond to a perfectly horizontal or vertical demand curve, nor does it imply elasticity greater than 1.

A Good That Has a Unit Elastic Demand