Demand is unit elastic if elasticity is:
A) less than one
B) equal to one
C) greater than one
D) equal to zero

Question

Quizplus · Accepted Answer

Demand is unit elastic when the elasticity of demand is equal to 1. This means that the percentage change in quantity demanded is equal to the percentage change in price. In other words, a 1% increase in price leads to a 1% decrease in quantity demanded, resulting in no change in total revenue.

Demand Is Unit Elastic If Elasticity Is