If the price elasticity of demand for opera tickets in Sydney is 1.00, then the demand for opera tickets in Sydney is
A) unit elastic.
B) perfectly elastic.
C) inelastic.
D) perfectly inelastic.
E) elastic.

Question

Quizplus · Accepted Answer

A price elasticity of demand of 1.00 means that the percentage change in quantity demanded is equal to the percentage change in price, resulting in a unit elastic demand. This means that a change in price will result in an equal change in quantity demanded, indicating that the demand for opera tickets in Sydney is neither highly responsive nor unresponsive to changes in price.

If the Price Elasticity of Demand for Opera Tickets in Sydney