Suppose that an economist estimates that the price elasticity of demand for televisions sets is exactly 1. This means demand is
A) elastic
B) inelastic
C) unit elastic
D) stable

Question

Quizplus · Accepted Answer

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

Suppose That an Economist Estimates That the Price Elasticity of Demand