If a 20% price increase generates a 20% decrease in quantity demanded,then this is a(n)_____ response.
A)inelastic
B)elastic
C)unit-elastic
D)perfectly elastic

Name: If a 20% price increase generates a 20% decrease in quantity demanded,then this is a(n)_____ response. A)inelastic B)elastic C)unit-elastic D)perfectly elastic
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Question

Quizplus · Accepted Answer

When a percentage change in price results in an equal percentage change in quantity demanded, the demand is considered unit-elastic.

If a 20% Price Increase Generates a 20% Decrease in Quantity