If the price of a good changes and the change in the quantity demanded is proportional to that price change, the good has a _____ demand.
A) unit elastic
B) perfectly elastic
C) perfectly inelastic
D) inelastic

Question

Quizplus · Accepted Answer

When the percentage change in quantity demanded is exactly equal to the percentage change in price, the demand is considered unit elastic. This means that the elasticity of demand is equal to 1.

If the Price of a Good Changes and the Change