When is the percentage change in quantity exactly equal to the percentage change in price?
A)When there is unitary elasticity.
B)When demand is inelastic.
C)When demand is elastic.
D)When demand does not change.

Question

Quizplus · Accepted Answer

When the demand for the product is unitary elastic, a percentage change in price results in an equal percentage change in the quantity demanded. In other words, if the price increases by 10%, quantity demanded decreases by 10%. Likewise, if the price decreases by 10%, quantity demanded increases by 10%.

When Is the Percentage Change in Quantity Exactly Equal to the Percentage