Demand is said to be ____ when the quantity demanded changes the same proportion as the price.
A)independent
B)inelastic
C)unit elastic
D)elastic

Question

Demand is said to be ____ when the quantity demanded changes the same proportion as the price.
A)​independent
B)​inelastic
C)​unit elastic
D)​elastic

Quizplus · Accepted Answer

Unit elastic demand occurs when the percentage change in quantity demanded is the same as the percentage change in price. In other words, the elasticity of demand is equal to 1. If a price increase leads to a 1% decrease in the quantity demanded, then the demand is unit elastic. If the percentage change in quantity demanded is less than the percentage change in price, then the demand is inelastic (option B). If the percentage change in quantity demanded is greater than the percentage change in price, then the demand is elastic (option D). Option A (independent demand) is not a viable choice as demand is never completely independent of changes in price.

Demand Is Said to Be ____ When the Quantity Demanded