If demand is unit price elastic, then quantity changes by the same percentage as the percentage change in the price.

Question

Quizplus · Accepted Answer

Unit price elasticity of demand means that the quantity demanded changes by the same percentage as the percentage change in price. So, if the price increases by 10%, the quantity demanded will decrease by 10%, and if the price decreases by 10%, the quantity demanded will increase by 10%. This indicates a perfectly responsive demand to changes in price, resulting in a constant total revenue.

If Demand Is Unit Price Elastic, Then Quantity Changes by the Same