When the demand elasticity of a service is ____,a small increase in price will lead to a decline of the same percentage in quantity.
A)10
B)1.0
C)0.0
D)0.1

Question

Quizplus · Accepted Answer

When the demand elasticity is 1.0, it is considered unitary elastic. This means that a small increase in price results in an equal percentage decrease in quantity demanded. For example, if the price of a service increases by 10%, the quantity demanded will decrease by 10%.

When the Demand Elasticity of a Service Is ____,A Small