If the elasticity of demand for a service is 1,then the demand for that service is
A)perfectly elastic.
B)elastic.
C)unit elastic.
D)inelastic.
E)perfectly inelastic.

Question

Quizplus · Accepted Answer

If the elasticity of demand for a service is 1, then it means that the percentage change in the quantity demanded is equal to the percentage change in the price of the service. In other words, the demand is neither too responsive nor too unresponsive to a change in price. This indicates that the demand is unit elastic.

If the Elasticity of Demand for a Service Is 1,then