Demand is said to be unit elastic if
A) quantity demanded changes by the same percent as the price.
B) quantity demanded changes by a larger percent than the price.
C) the demand curve shifts by the same percentage amount as the price.
D) quantity demanded does not respond to a change in price.

Question

Quizplus · Accepted Answer

Unit elastic demand occurs when the percentage change in quantity demanded is exactly equal to the percentage change in price. This means that the elasticity of demand is equal to 1. So option A, which states that quantity demanded changes by the same percent as the price, is the correct answer.

Demand Is Said to Be Unit Elastic If