If the price elasticity of demand is 1, demand is
A) upward sloping.
B) inelastic.
C) unit elastic.
D) elastic.

Name: If the price elasticity of demand is 1, demand is A) upward sloping. B) inelastic. C) unit elastic. D) elastic.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A price elasticity of demand of 1 means that for every percentage change in price, there is an equal percentage change in quantity demanded. This indicates that demand is neither highly responsive nor unresponsive to changes in price, making it unit elastic.

If the Price Elasticity of Demand Is 1, Demand Is